Political Monitor UK | December 8th Edition

APSCo News

Register for our policy meeting on 8^th January. This will be an opportunity to kickstart the new year, by which point more Employment Rights consultations may be open.  We will be looking to collaborate with our members to maximise the consultations we are able to submit responses to.  This meeting will also be an opportunity to highlight sector specific policy concerns.

A face to face meeting will follow in February 2026. 

Parliament & Legislation

Finance (No 2) Bill :

• The Bill completed its First Reading on 2^nd December 2025. It contains Chapter 11 the umbrella reform legislation which is found on p23, Clause 24 of Part 1.
  
  
• The Bill’s accompanying Explanatory Notes explained that the purpose of the new legislation is to “…drive behavioural change among businesses that use umbrella companies in the supply of workers by giving them a financial stake in the compliance of the umbrella companies that they use.”
  
  
• 61Y (joint and several liability) remains largely unchanged from previous drafts.
  
  
• 61Z1 has been rewritten and widened, with additional scenarios where liability can transfer.
  
  
• Jonathan Athow, Director General of Customer Strategy and Tax Design, HMRC, has spoken to Global Recruiter explaining the rationale behind the umbrella reforms.

Employment Rights Bill:

• The Bill will return to the House of Commons TODAY (8^th December) for further consideration by the House of Commons. The cumulative delays could mean that the Bill does not achieve Royal Assent until January.
  
  
• The Government has announced changes to the Employment Rights Bill, U-turning on its Manifesto commitment to offer all workers the right to claim unfair dismissal from Day One.
  
  
• This has now been removed and replaced with a policy that gives workers the right to claim unfair dismissal after six months, which will be implemented from 1 January 2027.
  
  
• The Government has also proposed lifting the statutory cap on unfair dismissal.
  
  
• This would mean not only removing the 52 weeks’ earnings limit placed on an employee’s future loss of earnings, but also the statutory cap which is imposed if the employee’s 52 weeks’ earnings exceed this figure.
  
  
• The Government argues it has made the climbdown to stop the Bill being delayed in the House of Lords, where it has run into opposition.
  
  
• Other proposed policies under the Bill have remained, including the right to statutory sick pay (with no lower-earnings threshold) parental leave from day-one, and protections for zero-and low-hours workers.
  
  
• Angela Rayner has allegedly accepted the compromise on day-one rights, after “considerable anger” that unelected Lords forced the watering down of day-one rights.
  
  
• Trade Unions have mostly accepted the compromise – arguing that the alternative of a nine-month probation period needed extra time for consultation amid worries it was unworkable.
  
  

The Government launched four consultations on how measures in the Employment Rights Bill should operate in practice, focusing on protections for pregnant women and new mothers, bereavement leave, and trade union reforms. 

The consultations are: 

1. Enhanced dismissal protections for pregnant women and new mothers 
   Proposals to make it unlawful to dismiss pregnant employees, those on maternity leave, and mothers for at least six months after returning to work, except in specific circumstances. Deadline: 11.59 on 15 January 2026
   
   
2. Bereavement leave, including pregnancy loss 
   Introducing a new day-one right to unpaid bereavement leave for employees who experience the loss of a loved one, including pregnancy loss before 24 weeks. Deadline: 11.59 on 15 January 2026
   
   
3. Duty to inform workers of their right to join a union 
   A requirement for employers to provide a written statement to workers at the start of employment and at other times, informing them of their right to join a trade union. Deadline: 11.59 on 18 December 2025 
   
   
4. Trade union right of access 
   Establishing a framework for trade unions to access workplaces physically and communicate with workers both in person and digitally. Deadline: 11.59 on 18 December 2025

Further consultations will follow in line with the Implementation Roadmap to ensure continued engagement with stakeholders on the Employment Rights Bill and the Plan to Make Work Pay. 

Extending the Right to Work Scheme:

• Separately, the Government is consulting with employers on extending right to work checks to the ‘gig economy’ to prevent illegal working, which means the requirement to carry out right to work checks will be extended to cover businesses hiring in the ‘gig economy’ and zero-hours workers. Deadline: 11.59pm on 10 December 2025. APSCo urges all members to respond.

DfE Consultation: Future Essential Digital Skills Standards – Employers Insights:

• The Government are reviewing the Essential Digital Skills (EDS) standards at Entry Levels 1-3 and Levels 1-2, and has launched a consultation to gather insights from employers to understand which skills are needed most and how these needs are changing. Deadline: 11.59 on 19 December 2025. APSCo urges all members to respond.

English Devolution Bill:

• The Bill is enjoying a relatively smooth passage through Parliament and will have its Second Reading debate in the House of Lords on 8^th December.

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