Chancellor John Healey has been accused of handing a "bung to Labour's political allies" after allocating £40 million for unions to use Angela Rayner's new workers' rights against bosses. The funding will revive the Union Learning Fund, a Blairite scheme scrapped by the Conservatives in 2021.
Funding for Union Learning
According to the Trades Union Congress, the money will promote activity by trade unions to "encourage greater take up of learning in the workplace." The timing, however, has raised concerns that taxpayers' money could be used to pressure employers and enforce the Employment Rights Act.
The announcement coincides with Ms Rayner's new laws, which came into force last week and which critics say make it much easier to sue employers.
Political Backlash
Shadow Chancellor Andrew Griffith said: "This is nothing but a political bung to Labour's political allies. Hard-pressed families get cheaper gherkins while Labour's trade union friends get a £40million giveaway. With the red tape (Un)Employment Act already costing jobs, this will just help unions browbeat businesses further."
When the scheme previously operated, nearly half of non-union members who took up training and development through the fund went on to join a union. According to the Mail on Sunday, it supported more than 50 unions across more than 700 workplaces during its 23-year history.
Criticism of the Scheme
The scheme is aimed at "improving learning" in the workplace, but the Tories describe it as a smokescreen for empowering unions to target employers. Businesses now face a range of complex measures, including a 'banter ban' in workplaces, unlimited compensation claims, and liberalised strike laws.
While union activities must remain legally separate from the fund, the Conservatives' then-education secretary Gavin Williamson said it served only to "channel money into the TUC."
