Political monitor uk january 13th edition 379023300812
Published: 13-Jan-26 | By APSCo
Public Policy
Political Monitor UK | January 13th Edition
Welcome to 2026! The news headlines so far have been dominated by global affairs, in particular concerning Venezuela and Greenland, which is unlikely to change anytime soon. However, the Prime Minister is well aware of the risk to his leadership in 2026 with local elections scheduled for May. Since his New Year message he has renewed his focus on cost of living and confirmed a Brexit reset bill will be commenced in 2026 giving ministers power to align UK law with EU law, primarily in markets feeling the most friction/additional cost including food and animal standards.
Read our weekly e-newsletter on Wednesday and our bi-weekly Political and Legal Monitor to stay up to date. Contact your account manager to register.
APSCo News
We kicked off the year with a policy forum on 8th January. There are a series of further events in January and February focused on the umbrella company reforms and the Employment Rights Act – including three in person events in Manchester and London. Register now as they fill up fast.
Evidence based submissions to consultations have more impact so start making notes now which you can feed into our or your responses e.g. difficulties you are facing with claims in the Employment Tribunals, clients’ and candidates’ reactions and strategies. We will notify you about new consultations as they are published.
Published on 7th January 2026, alongside an academic comparison of the reforms against OECD countries, the Government has reduced its estimate of the cost of the reforms from a hefty £5 billion to £1 billion. It concludes the reforms will have a small improvement on growth (0.4% increase in GDP) and employment overall, but small and mid size businesses will disproportionately feel the cost burden of implementing the reforms. The largest benefactors should be low paid workers, increasing their job security and rights.
The UK will remain less protective than the OECD average overall but will have above average levels of protection with respect to zero hours contracts, leave rights and some trade union rights. The government acknowledges that the costs and benefits of the ZHC reform will be hard to quantify until consultation on accompanying regulations conclude and have pledged to publish further assessments when they consult on proposed regulations.
The government is alive to the risks of the reform, such as a predicted increase of cases in the ACAS and Employment Tribunal system of around 17%, which they are looking to mitigate with work ongoing at the Ministry of Justice. This is alongside possible unintended consequences, such as employers responding to higher labour costs by reducing employee headcount, reducing hiring or switching to flexible routes such as contracting. They recognise that younger workers and workers with disabilities are among those at greater risk.
However, in light of comparison with previous UK reforms such as NLW increases and with other OECD country reforms, the government considers employers are more likely to modify their behaviour rather than reduce hiring.
The following Statutory Instrument was laid in Parliament on Monday 12 January, in order for the parental leave measures in the Employment Rights Act 2025 to take effect:
The Employment Rights Act 2025 (Parental and Paternity Leave) (Removal of Qualifying Periods etc.) (Consequential Amendments) Regulations 2026
The following Statutory Instruments was laid in order to allow Bereaved Partner’s Paternity Leave to take effect:
The Bereaved Partner’s Paternity Leave Regulations 2026
The Finance (No. 2 ) Bill , which includes the umbrella company reforms, has returned to the Commons with amendments setting out government plans to raise IHT relief for farmers from £1 million to £2.5 million. The Liberal Democrats are planning to make a bit of noise about the government’s “stealth taxes.” They have tabled an amendment to the Finance Bill to force ministers to write to every taxpayer affected by the income tax threshold freeze, spelling out how much more they will pay over the course of Parliament.
Parliament & Legislation
Spring Forecast 3rd March 2026
The Chancellor has announced the date of the Spring Forecast as 3rd March 2026. An OBR economic and fiscal forecast will be published followed by a statement to Parliament. This is in line with her decision not to have a full fiscal assessment twice a year.
Look out on the Events Page for an FD Forum shortly after the forecast.
Consultations: DBT Employment Rights Act
This is your last chance to submit responses to these consultations closing on 15th and 16th January 2026:
From late spring 2026, the Department for Work and Pensions plans to release regular official statistics about the Connect to Work employment programme.
These will provide information about the number of:
referrals to Connect to Work
starts to Connect to Work
They are seeking views on whether additional statistics could be collected and what use will be made of them.
The Government Cyber Action Plan is a core deliverable within the Roadmap for Modern Digital Government, part of broader activity to strengthen public sector infrastructure. It sets out how government will take proactive, risk-led action with clear accountability, mandatory requirements, and comprehensive central support.
The newly formed Government Cyber Unit, backed by over £210 million of central investment, will drive the plan forward, setting much stronger central direction, backing departments with expert support whilst demanding measurable progress. The plan includes a chapter on skills and the establishment of a dedicated government cyber profession.
DHSC has published this assessment highlighting several significant risks to the plan including complexity, funding, competing priorities and the need for legislative change to implement.
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