Reform UK, led by Nigel Farage, has unveiled a £5 billion tax break designed to reward workers who put in extra hours. The so-called 'hard work bonus' would create a tax-free allowance for overtime beyond a 40-hour workweek for employees earning less than £75,000 annually. According to the party, this policy would make overtime tax-free for 90% of workers, aiming to 'restore the appeal of a strong work culture.'
Funding the Plan
Reform claims the £5 billion annual cost can be covered through a £40 billion package of cuts and savings. However, both Labour and the Conservatives have questioned the feasibility of these proposals. Treasury Chief Secretary Lucy Rigby accused Reform of threatening NHS funding and workers' rights, while Shadow Chancellor Sir Mel Stride argued that the plan lacks credible savings and is 'back-of-a-fag packet' politics.
Impact on Workers
Reform highlighted specific examples in the Makerfield by-election constituency, where a warehouse worker doing six hours of overtime weekly would save £700 a year, and a prison officer working eight hours of overtime would gain £1,300. The policy is aimed at winning over voters in Labour's industrial heartlands, particularly ahead of the by-election where Labour's Andy Burnham is the candidate.
Farage stated, 'I've grown increasingly aware of the deep frustration felt by hardworking people who put in the extra hours yet see no real reward at the end of the month. They look around and see that work simply doesn't pay, that benefits often match or beat what they earn, and that ordinary families are being dragged into higher tax bands with nothing to show for it.'
Reactions from Rivals
Labour's Lucy Rigby said, 'Nigel Farage pretends to stand up for working people, but in reality he wants to cut back our NHS and strip away the hard-won boost to workplace rights Labour has delivered. If Reform wants people to take their unfunded, back-of-a-fag packet plans seriously, they should come clean about where their £40 billion of cuts would fall and which public services would pay the price.'
Shadow Chancellor Sir Mel Stride added, 'Hard work should be rewarded, which means getting taxes down in a fair and responsible way. Reform's proposal sets out no new savings to fund the £5 billion price tag. Reform do not do the serious thinking, which is why they keep promising things they cannot deliver.'
