Reform UK proposes tax-free overtime for under £75k

Reform UK has proposed scrapping income tax on overtime pay for workers earning under 75,000 pounds a year, a policy the party says would benefit nine in ten workers and cost the government an estimated 5 billion pounds annually. The plan, announced during the party’s campaign for the upcoming Makerfield byelection, would exempt all hours worked beyond a standard 40-hour week from income tax.

Party leader Nigel Farage described the measure as a “hard work bonus” that would restore a strong work culture across Britain. Treasury spokesman Robert Jenrick said the policy would save workers doing overtime more than 1,300 pounds a year. The party estimates that around 3.2 million workers currently receive overtime pay.

Reform UK says the 5 billion pound annual cost would be funded through a broader 40 billion pound package of spending reductions and efficiency savings. That package includes ending welfare entitlements for foreign nationals, capping foreign aid at 1 billion pounds, removing personal independence payments for those with nonserious anxiety conditions, scrapping net zero schemes, and reducing civil service back office roles.

The proposal has drawn criticism from Labour,...