Living wage boost pledged as King's Speech claims 'cost of living' will help set pay

King Charles has announced a raft of new changes to worker’s rights policies during his speech to parliament today.

Measures include the banning of "exploitative" zero-hour contracts and the removal of qualifying times for unfair dismissal, sick pay, and parental leave rights.

This announcement follows Labour's promise to introduce legislation within 100 days of taking office to deliver new workers' rights as pledged before the election.

The King said: "My Government is committed to making work pay and will legislate to introduce a new deal for working people to ban exploitative practices and enhance employment rights."

The Labour Party previously set out plans for a 'new deal' with workers with the remit of the Low Pay Commission to be expanded, so it would take into account the need for the cost of living to be reflected in minimum wage and National Living Wage levels.

The Low Pay Commission is independent from the Government and advises ministers on how to set the minimum and National Living Wage.

Labour ministers are to bring in a Employment Rights Bill granting workers a right to a contract reflecting the number of hours they reguarly work.

Employers would be required to give "reasonable notice" of any changes in a worker's shifts with adequate compensation for any shifts that are cancelled or curtailed.

The Government said: "This will end 'one sided' flexibility, ensuring all jobs provide a baseline level of security and predictability."

The new law is also intended to stop 'fire and rehire' practices, providing "effective remedies" and replacing the previous Government's statutory code.

All workers would have rights to parental leave, sick pay and protection unfair dismissal from day one of their employment.

Jack Kennedy, senior economist at UK hiring platform Indeed, said plans to crack down on zero-hour contracts was a move "in the right direction" for workers".

Pointing to the result of an Indeed survey, he said: "Bringing wages in line with the cost of living was another key concern for more than a third (39 percent) of workers, among whom almost one in five had seen no change in their salary since the start of the cost of living crisis.

"Addressing wage concerns is a key element of the government's new deal for working people, with plans to scrap age bands for the minimum wage expected to give 'hundreds of thousands of workers across the UK' a pay rise, according to Labour’s manifesto.

"This will come as a boost for lower-paid sector workers, which continue to drive UK wage growth—now at 7.0 percent year-on-year according to the Indeed Wage Tracker data—following April’s National Living Wage increase of 9.8 percent."

The monarch also said the new Government would "seek a new partnership with both business and working people and help the country move on from the recent cost of living challenges, by prioritising wealth creation for all communities".

The King said ministers will also set up an industrial strategy council with an objective to achieve "rising living standards in all nations and regions in the United Kingdom".

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