Employment Rights Act 2025
The question
To ask the Secretary of State for Work and Pensions, what assessment he has been made of how the Employment Rights Act will help reduce economic inactivity.
Answered by Dame Diana Johnson
The Employment Rights Act will support a reduction in economic inactivity by improving job security, job quality and working conditions, particularly for those in lower paid and insecure roles, who are concentrated in more deprived areas of the UK. Over 18 million employees are expected to benefit in some way from the Act’s new protections, with the greatest gains for workers in sectors such as social care, hospitality and retail, where low pay and irregular hours are most prevalent.
By strengthening protections for those at the margins of the labour market, the Act helps make work more stable, predictable and attractive. This is expected to encourage more people to enter or return to the labour market, supporting higher participation and reducing inactivity over time.
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