Reform UK has unveiled a £5billion “hard work bonus” that would scrap income tax on overtime for workers earning under £75,000.
The party insists it will clamp down on any attempts by employers to game the system.
It would make all hours worked beyond a standard 40‑hour week free from income tax, with Reform claiming nine in 10 workers could benefit.
The annual cost would be funded through what the party says is £40billion of spending reductions and efficiency savings.
Treasury spokesman Robert Jenrick faced questions on Sunday Morning with Trevor Phillips over whether firms could cut basic pay and shift earnings into overtime to minimise tax liabilities.
Critics warned the scheme risked encouraging employers to restructure pay in ways that undermine workers’ core wages.
Mr Jenrick rejected that criticism and said Reform would introduce strict anti‑avoidance rules to prevent abuse.
“There will be anti‑avoidance measures in place,” he said, adding that the party had already factored potential changes in employer behaviour into the £5billion costings.
He acknowledged some companies might attempt to alter working arrangements but insisted any manipulation would be met with enforcement action.
Reform UK unveils £5billion tax-free overtime policy for workers
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“If there is gaming of this, if there’s abuse, then obviously we’ll clamp down on that,” he said. “We’ll work with HMRC and the Treasury when we enter government to make sure that we get that right.”
Labour and the Conservatives questioned whether Reform could deliver the tax cut while maintaining public services.
Chief Secretary to the Treasury Darren Jones dismissed the plans as “fiction”, asking how the NHS would be funded if similar savings were promised elsewhere.
Nigel Farage said the proposal would restore a stronger work culture across Britain
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Mr Jenrick denied the NHS would face cuts, saying Reform would instead target “welfare for migrants” and people “choosing not to be in work”.
Reform is pitching the overtime tax break as part of a wider push to win over working‑class voters in traditional Labour areas, including ahead of the Makerfield by‑election.
The party has released examples showing how workers could benefit, including a warehouse employee who could gain £700 a year and a Band three prison officer who could see take‑home pay rise by £1,300.