King’s Speech: Labour’s key pledges that could affect your money

This morning (17 July), King Charles III set out the new government’s priorities for the year ahead at the state opening of parliament.

Read all about Labour’s key pledges which could affect your money situation.

Raise living standards

In his speech, the King assured the country that his government’s “fundamental mission” is to drive economic growth.

He announced Labour’s plans to work with both businesses and working people to move past cost-of-living challenges and prioritise “wealth creation for all communities”.

By setting up an industrial strategy council, he said, the government hopes to improve living standards across the UK.

Enhance working rights

The King said Labour are planning a new deal for working people which will ban “exploitative practices” in workplaces and give more rights to workers in England, Scotland and Wales.

The deal will give all workers parental leave and sick pay, and ban zero-hour contracts and unfair dismissal. It would also make it illegal to fire a new mother for six months after she returns to work, except in exceptional cases.

On top of this, all employers will have to allow flexible working “as far as is reasonable”.   

New renter protections

Over the next year, the new government have pledged to bring in a bill protecting tenants from unfair evictions and improving the quality of housing in the private sector.

With the renters’ rights bill, Labour plan to ban arbitrary evictions, empower tenants to challenge rent increases and make it illegal for landlords to refuse to rent to people with children.

The bill will also give renters the right to request a pet and prevent landlords from saying no without a legitimate reason. It will apply to England, with most of it extending to Wales too.

Evaluate tax and spending changes

Labour also want to introduce new legislation ensuring any significant changes to tax and spending are reviewed independently by the office for budget responsibility, King Charles announced.

“Stability will be the cornerstone of my government’s economic policy and every decision will be consistent with its fiscal rules,” he said.

Fiscal rules are the limits governments set on decisions around tax and public spending.

During the election, we called for the government to appoint a minister who would make sure new policies wouldn’t disproportionately harm the economic wellbeing of certain communities. We’re hoping Labour’s new bill is a step in the right direction in this respect.

Pension changes

The new government also plan to increase how much money those using private pension schemes are able to save, through a pension schemes bill. They say this could help people save over £11,000 more for their retirement.

Cheaper energy bills

Labour are committed to investing in green power and they claim this will help "lower energy bills for consumers over time".

Through the Great British Energy bill, the government will set up a publicly-owned clean power company - Great British Energy - to channel more investment into renewables like offshore wind.

Labour say they aim to make Britain a clean energy superpower by 2030 - creating new jobs and increasing energy security.