KillBait UK π¬π§Reform UK proposes removing income tax on overtime pay for eligible workers
π° Original title: Scrap tax on overtime hours, says Reform UK
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Reform UK proposes removing income tax on overtime pay for eligible workers
Reform UK has proposed a policy to remove income tax on overtime earnings for workers who earn less than Β£75,000 and work more than a standard 40-hour week. The party describes the initiative as a βhard work bonusβ, claiming it would incentivise employment, improve productivity, and make work more financially rewarding. According to its estimates, around 3.2 million workers currently receive overtime pay and could benefit from the measure. Reform UK argues that a full-time nurse working six hours of overtime each week could save more than Β£1,300 annually under the proposal. The party says the policy would cost approximately Β£5 billion per year and proposes funding it through reductions in welfare spending, including cuts to certain benefit programmes and changes to eligibility rules. Nigel Farage, the party leader, said the plan would restore a strong work culture and address concerns that work is not sufficiently rewarded compared with welfare support. The proposal has been strongly questioned by opposition parties, including Labour, the Conservatives and the Liberal Democrats, who have raised concerns about how the plan would be funded. Treasury Chief Secretary Lucy Rigby criticised it as unfunded and lacking clarity on where spending cuts would be made, while Shadow Chancellor Sir Mel Stride said the policy lacked credible savings. Liberal Democrat deputy leader Daisy Cooper called it unrealistic and economically risky. The Institute for Fiscal Studies also raised concerns, suggesting the policy could be difficult to implement in practice and might encourage reclassification of working hours as overtime to reduce tax liability. It also questioned whether targeting overtime for those already working more than 40 hours would effectively increase labour supply. The proposal also involves potential changes to EU-derived working time regulations to allow greater flexibility in defining overtime.
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