Reform UK has announced a bold proposal to eliminate all income tax on overtime hours, a policy estimated to cost £5 billion and aimed squarely at winning over voters in the so-called 'Red Wall' seats across the North and Midlands. The plan would introduce an uncapped personal allowance specifically for hours worked beyond the standard 40-hour week, applying to total annual incomes up to £75,000—covering approximately 90 per cent of workers.
Policy Details and Impact
More than three million people in the UK currently receive paid overtime, and Reform's proposal would significantly boost their take-home pay. For example, a warehouse worker at the South Lancashire Industrial Estate in the Makerfield constituency working six hours of overtime weekly would be £700 a year better off. Similarly, a Band 3 prison officer at HMP Hindley in the same area working eight hours of overtime per week could gain £1,300 annually.
Funding and Political Context
The party insists the policy would be funded from the £40 billion of annual cuts it has pledged under a Nigel Farage premiership, including capping foreign aid and ending welfare entitlement for foreign nationals. Mr 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.' He added that the policy would 'finally make work pay, drive up productivity, and restore the appeal of a strong work culture'.
Criticism from Opponents
The proposal has drawn sharp criticism from rival parties. Treasury Chief Secretary Lucy Rigby accused Reform of pretending to stand up for working people while wanting to cut the NHS and strip away workplace rights. She called the plan 'unfunded' and demanded clarity on where the £40 billion of cuts would fall. Shadow chancellor Sir Mel Stride argued that while hard work should be rewarded, Reform's proposal sets out no new savings to fund the £5 billion price tag.
The policy is particularly targeted at constituencies like Makerfield, where Reform is battling to prevent Labour's Andy Burnham from returning to the Commons. With the general election approaching, the tax-free overtime pledge is expected to be a key battleground issue in these marginal seats.
