The UK Government are today announcing further progress in the implementation of their landmark Employment Rights Act 2025, as part of the plan to make work pay. This update includes the launch of a public consultation on holiday pay compliance and enforcement, and three Government responses—detriments for workers taking industrial action, electronic balloting, and tipping. Further detail on each is provided in this statement.

As laid out in the “Implementing the Employment Rights” publication, we will not build a robust and growing economy through employment insecurity. Instead, we are building an economy based on fair competition between businesses, greater productivity in the workplace, job security for workers, and fair reward for hard work. The implementation of the Employment Rights Act is a vital step towards doing this, creating the best environment for doing business, maximising job security to raise productivity, improve skills and cut the costs of staff turnover. Meanwhile, offering opportunity and security for working people requires profitable businesses that are supported to invest and grow.

The Government have committed to delivering this change in partnership with businesses, trade unions, public sector employers, and civil society. That is why we are undertaking full and comprehensive consultation with these groups on key changes. By delivering this change together, we are backing businesses that do the right thing and giving hard-working people the job security and opportunities that they deserve.

Consultation 1: Holiday Pay Compliance and Enforcement

The Employment Rights Act enables the expansion of state enforcement to a wider range of pay rights, including holiday pay. The Government want to build a compliance and enforcement framework that is fair, proportionate and effective for both workers and employers. As a part of our framework, the right to holiday pay will, for the first time, be backed by state enforcement, with the Fair Work Agency promoting compliance, investigating non-compliance and taking enforcement action where employers fail to meet their obligations.

The Government will be consulting on the proposed approach to enforcing holiday pay from 2027, as well as consulting on a number of important design features and how the Fair Work Agency can support employers to comply with their obligations.

This consultation will be open for 12 weeks, closing on 22 September 2026.

Government Response 1: Detriments for workers taking industrial action

The Government believe that industrial relations should be conducted with integrity, fairness and mutual respect. Although it should always be treated as a last resort, if workers do choose to express their collective voice through industrial action, it is important that they are treated fairly and respectfully.

The Employment Rights Act introduced new legislation that provided protection for workers from detriments that employers might enact to penalise, prevent or deter them from taking industrial action. This legislation gave the Government the power to introduce secondary legislation to either prohibit all detriments, the Government’s lead option, or to create a prescribed list of prohibited detriments. A consultation ran between 26 February and 23 April seeking stakeholder views on these two options.

The Government response, published on 23 June, sets out that following this consultation the Government will be introducing regulations, coming into force in October 2026, that will ban all detriments and enable awards to be adjusted by up to 25%.

Government Response 2: E-balloting

The Government have been clear that trade union law must be brought into the 21st century. Under current legislation, almost all trade union statutory ballots must be conducted solely by post, which is outdated and risks limiting participation. We are therefore introducing electronic and workplace balloting for certain statutory trade union ballots in a phased approach. In this first phase, electronic balloting will be permitted for all ballots except statutory recognition and de-recognition ballots, while workplace balloting will be extended to industrial action ballots. This will make participation easier and will align with modern voting practices already used widely across political parties and listed companies, supporting the commitment we set out in our plan to make work pay.

To support the introduction of these new voting methods, we are also issuing a new statutory code of practice. The code will provide clear and detailed guidance on how electronic and workplace ballots should be conducted, giving all parties confidence that union ballots are carried out to a high standard.

A consultation on a draft of the code ran from 19 November 2025 to 28 January 2026, seeking views from employers, trade unions, scrutineers and workers to ensure that the guidance is clear, balanced and workable in practice.

The Government response to this consultation, published on 22 June, outlines the changes made to the draft code in the light of the feedback received. At the same time, the updated draft code of practice has been laid in Parliament alongside the necessary secondary legislation to enable electronic and workplace balloting. Both the code and the legislation will be subject to parliamentary scrutiny and will come into effect following approval by both Houses.

Government Response 3: Tipping

The Employment Rights Act strengthens the law, adding a requirement that employers must consult with their workers—if possible, via trade union or other elected workplace representatives—when developing or reviewing their written policy on tipping.

The Government ran a public consultation between 5 February and 1 April. We sought views from stakeholders about how best to implement the new requirements, to support worker participation in the distribution of tips, and enhance the voices of workers. We also sought views about any improvements to the existing statutory code of practice on fair and transparent distribution of tips, to ensure that it remains clear, helpful and effective for workers and employers.

The Government response sets out the feedback received during the consultation, and the changes to be made to the statutory code of practice. The new measures are expected to come into effect in October 2026.

Next steps for consultation

The Government continue to work in collaboration with a wide range of stakeholders to implement their reforms to workers’ rights at pace. Continued engagement with employer and worker representatives is critical to shaping the practical implementation of these plans, helping the Government to deliver reforms that are both effective and inclusive. The Government will continue to keep Parliament updated on the implementation of the Employment Rights Act and the plan to make work pay.

A further package of consultations and Government responses, to follow over the coming weeks, is expected to include a consultation on a new code of practice for fire and rehire, as well as Government responses regarding fire and rehire regulations, trade union access, trade union recognition, and a duty to inform.

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The first job of any Government is to keep people safe. Since I have been Chancellor, I have been clear that national security is central to our economic security, and we have invested record sums into defence. The Government have today confirmed an additional £15 billion for the defence investment plan between 2026-27 and 2029-30. That will mean this Government will be spending over £60 billion more on defence over the next four years than if spending were maintained in line with plans set out by the last Government in spring Budget 2024. This will move the UK towards warfighting readiness, modernise military capability to fight the wars of the future, and drive economic growth. The DIP document sets out investments in detail, totalling £298 billion over the next four years.

From ’27-28 onwards, the UK will spend 2.7% of GDP on core NATO defence spending, solidifying its position as the NATO alliance’s third-largest cash spender, behind only the US and Germany. The Government have committed to increasing defence spending to 3% of GDP in the next Parliament, with funding and plans to be set out at the next spending review, where defence must be the No. 1 priority. Alongside NATO allies, the UK has committed to reach 3.5% of GDP on defence spending by 2035. The UK remains committed to meeting its obligations to the defence investment pledge. All allies will review the trajectory and spend in 2029, when NATO next reviews its capability plans. This is more money for UK defence, spent more effectively to ensure our service personnel have the capabilities they need to deter and fight now, while driving out waste and inefficiency.

This will support £5 billion investment in drones and autonomous systems, the UK’s largest ever investment in drone warfare, and learning the lessons of Ukraine. It will fund strike and surveillance drones, a new hybrid Navy as well as uncrewed land vehicles. It will also support the next generation of RAF aircraft, with £8.6 billion investment under the Global Combat Air Programme with Italy and Japan, and £300 million for the development of collaborative combat aircraft. It will also support an £11 billion investment for munitions and weapons to increase UK stockpiles, at least six new energetics factories, and £3.2 billion in space capabilities. And it will deliver the UK’s renewal of the nuclear deterrent, with £64 billion of investment to build new submarines, develop a sovereign warhead and buy F-35A jets.

The defence investment plan will provide long-term certainty over Government procurement and innovation priorities, backing British business, and crowding in private investment and supporting high-value jobs and skills across the UK. By aligning defence spending with the Government’s industrial strategy, it ensures that every pound invested strengthens national security, while driving growth in key sectors, boosting regional economies and positioning the UK at the forefront of advanced manufacturing and technology.

At the same time, additional funding will support improved procurement and productivity, allocating £400 million towards the UK’s contribution to the multilateral defence mechanism, which will enable joint procurement with allies as well as supporting greater spending and our defence industrial base, and a £500 million transformation fund to enable transformation of the civilian workforce, reduce dependence on consultancies and deliver productivity improving investments in artificial intelligence. This is also supported by £115 million that the Department for Science, Innovation and Technology will spend to strengthen our defences against the risks of AI, and a new £50 billion defence export facility to support British defence businesses to compete and create jobs.

These choices are necessary to ensure our capabilities are fit for today, and to put defence on a sustainable footing. This includes moving towards more advanced, more effective technology. It also includes driving out waste and inefficiency, with a new commitment to deliver £250 million of fraud recovery by 2029-30. There will also be a fundamental reset in the Ministry of Defence’s financial management, with defence decision-makers accountable to the MOD permanent secretary on budget management, and annual DIP delivery updates to Parliament each year.

Funding

This package has been funded by reprioritising public spending and acting within our fiscal rules, and without taking resources away from day-to-day spending on frontline services. It is funded primarily by reallocating budget from across Government Departments, with £10.3 billion identified now. A further £4.7 billion over four years will be confirmed at Budget 2026, in a fair and balanced way.

We will ensure that we focus this on finding efficiencies, cancelling or delaying lower-priority programmes, and remaining ruthlessly focused on value for money for the taxpayer. Departments will also monetise assets, including underused land and buildings, so that we are securing the maximum value from the £1.9 trillion of assets the Government holds. Departments will bring forward details in due course.

As Departments with larger capital budgets, the Government have decided to ask the Department for Transport and the Department for Energy Security and Net Zero to make further contributions. DFT will provide up to £700 million of savings from roads funding. DESNZ will find an additional £2 billion of savings—including £400 million in financial transactions—while maintaining the fastest growing capital budget out of any Department across this spending review period. DESNZ will reshape its capital budget in a way that continues to protect the clean power mission, drive renewable and nuclear build-out and insulate us from future gas price spikes on the path to energy independence. More detailed plans will be shared by autumn.

A further £3.4 billion of spending power has been generated through removing burdens on defence. This unlocks new investment in the DIP. It includes £0.4 billion income from rationalising the MOD estate, and £0.6 billion from reprioritising MOD spending. His Majesty’s Treasury is also freeing up £2.4 billion by taking on responsibility for the cost of further support for ongoing international objectives, which include Ukraine security guarantees in the case of a ceasefire, and unlocking additional savings from improved procurement. That frees up cash from MOD’s budget, which it can invest elsewhere in the DIP. This will bring total additional funding to £15 billion—including £11.6 billion in additional cash. This is new investment, on top of existing budgets.

Departmental control totals will be adjusted to reflect these choices in the usual way at supplementary estimates.

We are committed to fiscal sustainability. We are acting within our iron-clad fiscal rules to protect households and businesses from higher inflation and higher interest rates, while readying UK defence against emerging global threats.

The Under-Secretary of State for Business and Trade, my hon. Friend the Member for East Renfrewshire (Blair McDougall), announced the Horizon family members redress scheme on 19 March 2026. The scheme offers redress to close family members of postmasters whose lives were significantly affected by failures in the Horizon IT system.

The Government are committed to ensuring that family members of postmasters receive their compensation with minimal administrative burden and will legislate to formalise tax exemptions shortly, ensuring that no income tax or capital gains tax will be payable for redress received related to this scheme. The legislation will also relieve these payments from inheritance tax. Existing legislation ensures that national insurance contributions will not be due.

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On 27 February 2026 Paramount announced it would acquire Warner Bros Discovery for $110 billion—£83 billion.

Under the Enterprise Act 2002, I can intervene if I have reasonable grounds to suspect that arrangements are in contemplation which, if carried into effect, will result in the creation of a relevant merger situation and I believe that one or more public interest considerations under the Act may be relevant.

Following engagement with the parties and independent research, my Department has today written to the current and proposed owners of Warner Bros Discovery on my behalf to inform them that I am minded to intervene on the following public interest grounds:

The need for, to the extent that it is reasonable and practicable, a sufficient plurality of views in news media in each market for news media in the United Kingdom or a part of the United Kingdom.

The need, in relation to every different audience in the United Kingdom, or in a particular area or locality of the United Kingdom, for there to be a sufficient plurality of persons with control of the media enterprises, or the enterprises providing on-demand programme services or both, serving that audience.

I am conscious that the proposed acquisition is global in nature. In reaching this decision, my focus has been, and will remain, on the UK public interest and the range of services available to UK audiences, including Channel 5, TNT Sports, Cartoon Network, Nickelodeon, and CNN International, as well as Paramount+ and HBO Max.

The public interest consideration regarding plurality of persons with control of media enterprises, or enterprises providing on-demand programme services, is not currently specified in section 58 of the Act. However, under section 42 of the Act, I may specify a new public interest consideration for Ofcom to consider in relation to the merger, if I consider it ought to be specified in section 58. As the legislation was drafted at a time when viewing was largely via broadcast linear channels, it does not cover the effect of a merger on streaming or video-on-demand services. I believe this ought to be able to be considered in relation to this and all future media mergers given the role on-demand viewing now plays in the market. If I decide to intervene in this merger on that basis, I will bring forward secondary legislation to finalise this public interest consideration as the Enterprise Act requires me to do.

The letters to the parties, and other relevant updates, will be published on gov.uk.

It is important to note that I have not taken a final decision on intervention at this stage. The “minded to” letter invites further representations in writing from the parties and gives them until 6 July to respond.

If I decide to issue an intervention notice, the next stage would be for Ofcom to assess and report to me on the public interest considerations, and for the Competition and Markets Authority to assess and report to me on whether a relevant merger situation has been created, and any impact this may have on competition.

Following these reports, I would need to decide whether to refer the matter for a more detailed investigation by the CMA under section 45 of the Act. I am mindful of the need to reach a final decision in a timely manner, and I will endeavour to do so as appropriate.

I will update Parliament on my final decision at the earliest opportunity.

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Farming is at the heart of our food security, the rural economy and the environment.

Through the farming road map that we published earlier this month, this Government have set out a clear long-term vision for a more profitable, productive and resilient farming sector, backed by practical support to help farmers invest in their businesses and plan for the future. A fair and accessible sustainable farming incentive is a key part of delivering that vision, rewarding farmers for sustainable food production and environmental improvement while supporting farm profitability.

Today, I am pleased to confirm that the first application window for the sustainable farming incentive 2026 is now open:

https://www.gov.uk/government/publications/sustainable-farming-incentive-2026-sfi26

Window 1 is open to two groups:

small farms; and

farms without an existing environmental land management revenue agreement.

These groups have been less likely to enter SFI in the past, so this Government are giving them priority access to SFI26, with the aim of expanding coverage and spreading available funding across more farms.

SFI pays farmers for practical, on-farm actions that support sustainable food production while benefiting the environment, from improving soil health and keeping waterways clean to creating space for wildlife and reducing reliance on synthetic fertilisers.

Previously, a quarter of SFI money went to just 4% of farms. To address this, we have restructured the scheme so that it is simpler, and we are making sure the budget can be distributed fairly across more farms. For example, we have introduced an annual agreement value limit of £100,000 per farm, and a rule that each farm business will only be able to have one SFI26 agreement.

We have also streamlined the number of actions to reduce complexity while still leaving plenty of choice for farmers.

SFI26 is backed by £240 million for new SFI agreements, building on more than £560 million already committed, and forms part of the Government’s record £11.8 billion investment in sustainable farming and food production over this Parliament.

A budget of £60 million has been set aside for window 1, with any unspent funding carried forward to window 2, which will open in September 2026 for all farmers and land managers in England.

Window 1 is demand-led and will remain open for around two months, although it may close sooner if the £60 million budget is fully allocated. The Government will provide regular updates on the allocation of the window 1 budget, giving farmers clear visibility of how quickly funding is being taken up.

We have also taken action to help farmers with soon-to-expire environmental land management revenue agreements. Normally, they would not be able to access the full SFI26 offer until their existing agreement ended. To help them, we are developing functionality in the SFI26 application service to allow them to apply early for SFI26, before their existing agreements expire.

This new functionality will be available for window 2 from September. It will apply to farmers with soon-to-expire ELM revenue agreements such as SFI23 or countryside stewardship mid tier due to expire by the end of February 2027.

Some small farms eligible for window 1 may wish to consider waiting for window 2 to take advantage of this feature, given that they will be allowed only one SFI26 agreement.

More detail is set out in this morning’s post on Defra’s farming blog:

https://defrafarming.blog.gov.uk/2026/06/30/sfi26-window-1-now-open

Farming is the backbone of our countryside and food security, and we are proud that today we are delivering on our promise and opening the first window of SFI26 for small farms and those without an agreement.

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I refer hon. Members to the oral statement I made in the House today, 30 June 2026, on the publication of the national maternity and neonatal investigation.

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Today I am pleased to inform the House that those members of the public who are fortunate enough to look younger than their age, but are always having to carry their passport or driving licence to prove that they are 18 or over to buy a pint in a pub, will soon no longer have this dilemma. In future, digital ID will be a quick and secure way to prove age without revealing any additional personal details to bar staff, and will mean that passports can be left safely at home by those who choose this option.

I am therefore laying a statutory instrument to deliver on our commitment to update the Licensing Act 2003 (Mandatory Licensing Conditions) Order 2010 made under the Licensing Act 2003. This change will permit the use of certified and registered digital verification services for the sale and supply of alcohol in England and Wales, where certain conditions are met.

Currently, the order requires physical documents bearing a photograph, date of birth and security features to verify age. However, with the increasing adoption of secure digital technologies, the Government recognise the need to align legislation with today’s consumer habits and modern technology. Those who prefer to prove their age using physical documents can still do so.

This change will allow alcohol retailers and clubs to accept digital proof of age, provided it is presented from a DVS that is certified against the UK DVS trust framework, appears on the statutory DVS register on www.gov.uk'>www.gov.uk, and meets certain conditions as specified in the mandatory licensing conditions. Certified and registered digital verification services allow individuals to choose from a range of identity evidence when setting up a digital proof of age, including physical documents, information held by public authorities and digital credentials issued by the Government, like the upcoming digital driving licence. To prove age when purchasing alcohol, there will not be any requirement to use a specific source of identity evidence if using a DVS, and physical forms of identification will still be accepted.

The updated mandatory condition will:

Permit the use of registered DVS for age verification in alcohol sales and supply where specific conditions are met.

Help to ensure that those DVS meet strict standards for security, privacy, and reliability, as set out in the trust framework.

Maintain the core licensing objectives, including the protection of children from harm, by ensuring that digital age checks are as robust as checks using physical documents.

Subject to Parliamentary procedure, the Government intend the statutory instrument to come into effect in autumn 2026. An Economic Note will be published on legislation www.gov.uk alongside the instrument.

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The Government are today laying regulations to strengthen the right to work and the right to rent schemes, alongside updated statutory codes of practice for employers and landlords. These measures implement provisions in the Border Security, Asylum and Immigration Act 2025 and will come into force in October 2026, in line with the common commencement date for businesses.

Clamping down on illegal working continues to be a critical part of this Government’s work to restore fairness, order and control within the immigration and asylum system. The ability to work illegally is a driver of illegal migration and exploitation. Illegal working undermines honest businesses and exposes vulnerable individuals to exploitation. This Government are clear that such activity will not be tolerated.

The reforms introduce, for the first time, an extension of the right to work scheme and the associated civil penalties for non-compliance, to cover companies that contract workers or individual subcontractors to provide services under their company name, such as agency workers or workers in the gig economy. These changes close gaps in the current framework and ensure that responsibility for the prevention of illegal working sits appropriately across modern labour market structures.

The regulations also strengthen the framework for digital identity verification. They introduce updated requirements for the use of digital verification service providers, mandating that when choosing to use digital verification for a right to work or right to rent check, it must be carried out using Government-registered providers. Digital verification services are central to delivering secure, efficient and reliable checks under both schemes.

In addition, powers in the Data Use and Access Act 2025 will enable a broader use of document verification through digital means to support candidate onboarding, strengthen assurance and give individuals greater choice over how they share their personal information.

Taken together, these measures respond to changes in the labour market, including the growth of flexible and platform-based work, and ensure that the framework for preventing illegal working remains effective and proportionate.

Enforcement of the new measures will commence from October 2026, when the regulations come into force.

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Over a million young people are now not in education, employment or training. This Government are acting and determined not to leave an entire generation of young people behind. The youth guarantee is our commitment to ensure that every young person across Great Britain can access support to earn or learn. We are investing an additional £2.5 billion over the next three years in the youth guarantee and the growth and skills levy, supporting almost a million young people and creating up to 500,000 opportunities to earn and learn.

Today, I am pleased to announce the launch of the youth jobs grant, a key component of the youth guarantee. The grant opens for applications today, offering £3,000 to employers across Great Britain for each eligible young person they recruit. It is targeted at 18 to 24-year-olds who have been unemployed and in receipt of universal credit for six months or more, giving talented and motivated young people a chance at meaningful work.

Grants will be paid in two instalments—£1,800 in month two and £1,200 in month five—to encourage recruitment and sustained employment. Roles must be at least 25 hours per week and are expected to last a minimum of four months. The scheme is open to employers in all sectors and regions.

Employers will be able to apply through a simple application process from today found on the youth jobs grant site https://www.find-government-grants.service.gov.uk/grants/youth-jobs-grant-1 with further details on eligibility and requirements available on the “Build Your Future Workforce” site https://www.business.gov.uk/campaign/recruit-with-jobcentreplus/build-your-future-workforce/

By supporting employers with the up-front costs of recruitment and training, the youth jobs grant will help more young people to secure a meaningful job, build confidence, and gain valuable workplace experience. The youth jobs grant is a vital step in delivering our commitment to support young people into work while helping employers to access the talent they need to grow.

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