Question to the Department for Business, Innovation, Science and Trade:

To ask the Secretary of State for Business, Innovation, Science and Trade, what assessment he has made of the potential impact of the implementation of the Employment Rights Act 2025 on levels of inflation.

The Government has published a comprehensive assessment on the impact of the Employment Rights Act. This analysis is available at: Employment Rights Act 2025: impact assessments - GOV.UK.

The analysis demonstrates that the cost of the package is proportionate – equivalent to a 0.1% increase in annual employment costs – and will be a net benefit to society. The assessment notes that prices are one of numerous channels through which firms may respond to these costs, however, there is limited evidence linking employment regulation changes and inflation.