Regulatory body slams Labour’s workers' rights cost estimates
- The Regulatory Policy Committee warned that Labour's workers' rights overhaul could surpass the estimated £5 billion cost.
- Concerns were raised about job losses and wage cuts possibly being underestimated.
- Business groups have urged ministers to reassess the implications of these plans on small businesses.
In the United Kingdom, the Regulatory Policy Committee (RPC) released a report criticizing the Government's impact assessment of the Employment Rights Bill, associated with Deputy Prime Minister Angela Rayner. The RPC highlighted that the estimated cost of £5 billion for businesses may be understated, suggesting that significant costs linked to agreements in adult social care pay were not appropriately calculated. Furthermore, the report indicated a potential underestimation of job losses and wage cuts that could arise from the proposed changes, emphasizing that eight out of twenty-three individual impact assessments were deemed inadequate. The RPC's findings prompted warnings from business groups regarding the implications for job creation and the viability of small businesses, with calls for reconsideration of the Government’s approach to labor policies.