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Scrap tax on overtime hours, says Reform UK
🇬🇧 United Kingdom /Elections & Politics

Scrap tax on overtime hours, says Reform UK

From BBC News · () English

Summarized and contextualized by DistantNews.

At a glance

News Named sources Context piece
  • Reform UK proposed scrapping income tax on overtime hours for workers earning under £75,000, estimating it would save nurses over £1,300 annually.
  • The party claims the policy would cost £5 billion and be funded by cuts to welfare payments, a claim questioned by other parties.
  • Labour, Conservatives, and Liberal Democrats criticized the plan as unfunded and fiscally irresponsible.

Reform UK has proposed eliminating income tax on overtime earnings for individuals earning less than £75,000, a policy they are calling a "hard work bonus." The party estimates this change would save a full-time nurse working six hours of overtime weekly more than £1,300 per year.

finally make work pay, drive up productivity and restore the appeal of a strong work culture once again

— Nigel FarageReform leader Nigel Farage described the potential impact of the proposed overtime tax policy.

The party suggests the "hard work bonus" would cost £5 billion annually and could be financed by cuts to welfare payments. However, this funding proposal has faced skepticism from Labour, the Conservatives, and the Liberal Democrats, who question Reform UK's ability to secure the necessary funds. Reform leader Nigel Farage stated the policy would "finally make work pay, drive up productivity and restore the appeal of a strong work culture once again," arguing that many workers feel their efforts are not adequately rewarded.

If Reform want people to take their unfunded, back-of-a-fag packet plans seriously, they should come clean about where their £40bn of cuts would fall and which public services would pay the price.

— Lucy RigbyTreasury Chief Secretary Lucy Rigby criticized Reform UK's funding proposals.

Reform UK claims its £75,000 threshold would allow 90% of workers to benefit from the tax cut, estimating that around 3.2 million people receive overtime pay. The party has also outlined plans to fund this initiative by ending Personal Independence Payments for individuals with anxiety disorders and revoking EU citizens' rights to claim benefits. They also intend to amend EU laws, such as Working Time Regulations, to facilitate this tax break.

Hard work should be rewarded, which means getting taxes down in a fair and responsible way. Reform's proposal sets out no new savings... they keep promising things they cannot deliver.

— Sir Mel StrideShadow chancellor Sir Mel Stride commented on the feasibility of Reform UK's tax plan.

Other political parties have voiced strong opposition. Treasury Chief Secretary Lucy Rigby challenged Reform UK to reveal where its proposed £40 billion in cuts would fall. Shadow chancellor Sir Mel Stride criticized the plan as lacking new savings and being undeliverable, while Liberal Democrat deputy leader Daisy Cooper dismissed it as "fantasy economics." Helen Miller from the Institute of Fiscal Studies noted the proposal's practical and principled issues, questioning its effectiveness in increasing labor supply.

Farage's fantasy economics is a gamble our country cannot afford to take.

— Daisy CooperLiberal Democrat deputy leader Daisy Cooper criticized Reform UK's economic proposals.
DistantNews Editorial

Originally published by BBC News. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.

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