TUC: Workers Denied £2bn Holiday Pay in 2023

A new analysis by the Trade Union Congress (TUC) has revealed that UK workers were deprived of £2 billion worth of holiday pay last year. More than 1.1 million employees, equivalent to 1 in 25 workers, missed out on paid leave, despite being legally entitled to it.

The findings, released ahead of the TUC’s annual Congress, show that Black and minority ethnic (BME) employees were disproportionately affected, with 6% receiving no holiday pay, compared to 4% of white workers.

Low-paid workers, particularly in sectors such as hospitality and care, were also among the hardest hit. Waiters, care workers, and kitchen staff were the most affected, with tens of thousands of employees missing out.

Paul Nowak, General Secretary of the TUC, criticised the previous Conservative government for failing to protect workers’ rights, saying, “More than a million people have been deprived of the paid leave they are due, while hundreds of thousands more have missed out on basic rights like the minimum wage.”

The TUC blames the lack of enforcement for the widespread exploitation, noting that rogue employers are able to ignore legal obligations without consequence.

Recent government data found that over 365,000 workers were underpaid the minimum wage, while others were denied access to essential rights like payslips or auto-enrolment into pension schemes.

To combat the issue, the TUC has launched a “five-point plan” aimed at strengthening the enforcement of employment rights.

The plan calls for the creation of a single, well-funded enforcement body that would work alongside unions to crack down on exploitative employers.

It also recommends recycling fines from non-compliant businesses back into enforcement efforts and increasing the number of workplace inspections.

The plan has garnered significant public support, with recent polling showing that 61% of voters back the introduction of a new enforcement body, including a majority of Conservative voters.

The Labour government has pledged to address these issues through a new Fair Work Agency, which would unify existing enforcement agencies and have the power to hold non-compliant employers accountable.

Nowak emphasised the need for swift action, stating, “Good employers who follow the rules have nothing to fear. Labour’s Fair Work Agency must have real teeth to stop rogue employers from continuing to exploit workers.”

The TUC Congress, which runs from 8-11 September in Brighton, will see unions discuss strategies to improve workers’ rights and push for reforms under the new Employment Rights Bill.

[Photo: depositphotos.com]