Keir Starmer has vowed to deliver more money into people’s pockets, insisting landmark reforms to workers’ rights will boost living standards despite ongoing inflation pressures.

The Prime Minister said the Employment Rights Bill represents the biggest upgrade to protections in a generation.

He argued the legislation will create more secure jobs, higher household incomes and stronger economic growth.

The government’s determination to overturn the Lords’ changes signals its commitment to comprehensive workplace reforms.

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Around half of Britain’s workforce stands to gain enhanced protections under the proposed Bill.

The legislation would give immediate access to parental and bereavement leave from day one, removing existing waiting periods.

It also includes measures to ban exploitative zero-hours arrangements, giving greater security to previously unpredictable workers.

The Prime Minister reacted by saying: “This Government is delivering the biggest upgrade to workers’ rights in a generation.”

He added that the Employment Rights Bill will benefit workers, businesses and the broader economy.

“It’s a core part of our agenda to make people better off and will make a real difference to people’s lives,” he stated.

The reforms form part of a broader strategy to eliminate precarious employment conditions.

Ministers argue that stronger workplace protections will boost household incomes and living standards while supporting economic growth.

The legislation extends safeguards already used by leading employers to the wider workforce, standardising employment rights across the UK.

It would also expand statutory sick pay coverage to around 1.3 million of Britain’s lowest-paid workers.

This aims to address gaps for those in precarious financial situations who previously lacked support when ill.

The Bill targets the controversial practice of dismissing and re-engaging staff on inferior terms, known as “fire and rehire.”

Ministers say the changes will prevent unfair practices and improve financial security for vulnerable workers.

The reforms set minimum standards to prevent exploitation and ensure fair treatment, regardless of employer.

Business and Trade Secretary Peter Kyle reinforced the message, asserting the government’s commitment to improving financial wellbeing.

Mr Kyle said: “We are relentlessly focused on making people feel better off and putting more money into their pockets.”

He argued that enhanced workplace security would stimulate economic activity.

“It promotes prosperity, enabling people to be more active consumers and exercise more control over their lives,” Mr Kyle explained.

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The government has held extensive talks with business representatives and trade unions throughout the Bill’s development.

Ministers say this engagement ensures the legislation serves both employer and employee interests effectively.

Mr Kyle highlighted the vision for a new economic partnership.

“We are focused on building an economy with a new social partnership – workers, businesses and government fixing the foundations and that starts with security at work,” he said.

Consultation will continue as the Bill moves through Parliament, providing opportunities for refinement.

Ministers emphasise that giving businesses clarity about future requirements has been key, allowing companies to prepare for forthcoming changes.