Like most people I’ve been avidly watching the news for the latest developments in Whitehall and Westminster.  Politics hasn’t been this exciting for years and with a coalition government comprising two parties that aren’t supposed to like each other very much, it will probably stay that way until the next election in May 2015.  Leaving aside the redundancies (particularly in the public sector) and subsequent increase in unemployment that, sadly, looks inevitable, are we set for an exciting time in the employment arena?

Some clues are given by the coalition deal document. There will be an independent commission into the affordability of public sector pensions will recommend painful cuts. I suspect that by the time of the next election public sector pension provision will be much reduced and the there will be no new entrants into final salary schemes.  

The last government indicated that it would legislate to remove the default retirement age and I expect that to be continued by the ConLibs (what do we call them LibCons, not Condems surely?).  The state pension age will go up to 66 by 2016 for men and 2020 for women.

An emergency budget is due within 50 days of the election.  Expect National Insurance to rise for employees but not employers (as Labour had proposed).  Income Tax thresholds will rise to £10,000, but when? State benefits for unemployed people are going to be reformed and a welfare to work programme is under consideration. 

Although there is no commitment in the coalition document to do so, it is rumoured that the Equality Act, which recently received the Royal Assent, will be amended to water down some of its clauses on pay audits and positive action in recruitment.  Flexible working rights may be extended and both parents allowed to share parental leave. 

In the past one might have expected the Tories to have a “bonfire of the regulations”.  Whether they will be able to do this so  easily with the Lib Dems on board is an interesting question.  The new government, like the last, will have to pay attention to new Directives coming out of Europe.  

 

In short, I expect there to be plenty of new laws, regulations and cases to keep employment lawyers busy over the next five years. We will be keeping an eye out for them and I will post news items on the most relevant.  Please do subscribe to further updates by clicking on our RSS feed or contact us directly: This e-mail address is being protected from spambots. You need JavaScript enabled to view it or 0207 464 8433 

 

Michael Scutt