The Labour government has enacted a new law that will grant public sector union representatives significantly more paid time off from their regular jobs to conduct union work, while simultaneously removing the requirement to disclose the cost to the taxpayer.
What the New Employment Rights Act Changes
The Employment Rights Bill received Royal Assent last week, fundamentally altering the rules around 'facility time'. This is paid leave that union reps can use for duties like organising, negotiating, and representing members. The new legislation essentially allows the representatives themselves greater discretion in deciding how to use this time.
Guidance on the law, championed by former deputy prime minister Angela Rayner, also introduces a novel right to time off specifically for promoting workplace equality. Crucially, while the total cost of facility time to the public purse has historically been published, the new law scraps this transparency requirement. It also abolishes the ability for employers to cap the amount of time taken.
The Financial Impact and Criticism
The most recent data from the Cabinet Office reveals the scale of existing spending. In the 2024/25 financial year, facility time in the public sector cost taxpayers £106.4 million. The single biggest spender was the NHS, which is currently experiencing major industrial action coordinated by the British Medical Association.
Under the new framework, officials will be able to decide what constitutes a 'reasonable' amount of time off, with employers forced to challenge decisions at a tribunal if they disagree. The government argues this will improve industrial relations and worker representation.
However, the move has drawn sharp criticism. John O'Connell, chief executive of the TaxPayers' Alliance, told The Times: "It will add insult to injury for British taxpayers to see such vast amounts of their money be siphoned off to pay for paid time off for trade union stooges." He urged ministers to cut, not increase, this spending.
Internal Labour Tensions Surface
The controversy coincides with the emergence of a provocative paper from Labour Together, the think-tank instrumental in Sir Keir Starmer's leadership campaign. The document, circulated to MPs, described the Employment Rights Act as a 'safety blanket' that could 'sap dynamism' from the economy.
It suggested the government should ditch 80% of the new regulations on businesses, embrace 'easy firing', and provide unemployment insurance instead. Opening with the phrase 'Tony Blair was right', the paper is seen as a direct rebuke to the party's left wing, including Angela Rayner.
Sources close to Labour Together insisted on Friday night that the think-tank was not calling for the bill to be scrapped, but was merely exploring future economic possibilities. The paper was distributed as the bill cleared its final parliamentary hurdles following a stand-off in the Lords.
