Reform UK Proposes Tax-Free Overtime Above 40 Hours

Reform UK proposed scrapping income tax on overtime worked above a 40-hour week for employees earning less than £75,000. The party said the change, which it called a "hard work bonus," would save a full-time nurse working six hours of overtime each week more than £1,300 a year.

Reform UK estimated the policy would cost £5 billion annually and said the cost would be covered by planned reductions in welfare payments.

2 million workers currently receive overtime pay.

Helen Miller of the Institute for Fiscal Studies said the proposal was "problematic in principle and practice" and questioned why an incentive should target employees already working at least 40 hours a week. " Reform UK also said it would change related EU law, including Working Time Regulations, to allow workers to take advantage of the tax break.