Reform UK has unveiled a plan to eliminate income tax on overtime hours worked beyond a 40-hour week for employees earning under £75,000 annually. Dubbed a "hard work bonus," the policy aims to reward extra effort and increase take-home pay for millions of workers.
According to the party, a full-time nurse putting in six hours of overtime weekly would save over £1,300 per year. The proposal, estimated to cost £5 billion annually, would be funded by cuts to welfare programs, including the elimination of Personal Independence Payments for anxiety disorders and restrictions on EU citizens' benefit claims.
Reform leader Nigel Farage stated the policy would "finally make work pay, drive up productivity and restore the appeal of a strong work culture once again." He argued that hardworking people see work as unrewarding when benefits match or exceed wages.
The party claims 90% of workers—around 3.2 million who regularly receive overtime—would benefit. Reform also cited potential savings for warehouse staff and prison officers.
However, political opponents criticized the plan's funding. Treasury Chief Secretary Lucy Rigby called it an "unfunded, back-of-a-fag packet plan," demanding clarity on where the £40 billion in cuts would fall. Shadow Chancellor Sir Mel Stride noted, "Hard work should be rewarded... but Reform's proposal sets out no new savings."
Reform said it would modify EU-derived Working Time Regulations to facilitate the tax break. The announcement follows a Trades Union Congress analysis revealing 3.8 million people worked an average of 7.2 unpaid hours weekly in 2024, losing £8,000 each annually.