Pay & employment
Introduction
A flexible labour market is critical so employers can continue to deliver good pay and conditions for employees while continuing to boost employment prospects. This section covers the Government’s plan to Make Work Pay and updates on the National Minimum and Living Wage rates.
Make Work Pay is a flagship plan of the Labour Government focusing on reforming the current employment rights landscape. The Employment Rights Bill (ERB) and the Equality (Race and Disability) Bill are two of the key means of delivering the Make Work Pay plan – please see below for more details.
Employment Rights Bill (ERB)
Proposed changes from the government that are under review:
- Establishment of the Fair Work Agency (FWA)
- Industrial Relations
- Collective Redundancy
- Zero Hours Contracts
- Ethnicity and Disability Pay Gap Reporting
- National Living Wage
For members:
Members can find full details of the FDF’s positions on the Employment Rights Bill here.
Further information
National Minimum and Living Wage (NMLW)
National Living Wage (NLW) and National Minimum Wage (NMW) rates are important considerations for FDF as it is relevant to the competitiveness of, and employment levels in, the UK food and drink sector.
FDF responded to the 2025 Low Pay Commission (LPC) consultation. Our key positions include:
- Maintaining the NLW at two-thirds median earnings as recommended by the LPC, but caution on the impact of additional burdens on employers from NIC rises and other regulations.
- Clarity on the direction of travel for future minimum wage rates to help inform business planning.
Following the closure of the LPC consultation, they received their remit from government, which resulted in an updated central estimate for the NLW.
Updated NLW central estimate: £12.71 (4.1%) – with a range from £12.55 to £12.86.
Current UK Gov NLW & NMW rate
Equalities Disabilities and Race Bill – Mandatory Pay Reporting
FDF have responded to the government’s consultation looking at mandatory ethnicity and disability pay gap reporting for large, private and voluntary sector employers in England, Wales and Scotland. FDF’s key positions include:
- Support the intention behind the proposals and what it seeks to achieve
- However, existing challenges in data collection and interpretation need to be addressed.
- Recommend government delay the mandatory disability pay gap reporting pending further review of data collection and outcomes.
Members: Members can find full details of the FDF’s positions on the Equalities Disabilities and Race Bill here.
