Employment law news in brief - April 2026

Here's our round-up of employment law news for April 2026.

Low Pay Commission launches consultation on 2027 minimum wage rates

The consultation seeks views on the LPC’s estimate that maintaining the NLW at this level would require a rate between £13.02 and £13.34 from April 2027, with a central estimate of £13.18, as well as views on the impact of recent NLW increases and minimum wage changes for younger workers. 

The consultation closes on 26 June 2026.

One in four UK workers plan job move as pay and recognition concerns grow

Almost a quarter of UK employees plan to change jobs this year, according to new research. A poll of 2,000 workers found that 24% are either actively looking for a new role or intend to move employer, with job mobility highest among younger workers. Around 32% of those under 34 and 30% of people aged 35 to 44 expect to seek a change, compared with far lower levels among older age groups.

Pay remains the main driver behind potential moves. More than a third of those considering a job change said they feel underpaid, while a further quarter said they want to leave because they feel undervalued at work. Women were more likely than men to cite a lack of recognition and limited career progression as reasons for wanting to move on. The research also highlights demand for more fulfilling work, better work–life balance and manageable workloads, as well as dissatisfaction with leadership and limited opportunities to develop skills.

Government introduces ‘right to try’ law for disabled benefit claimants

The government has introduced legislation aimed at removing barriers to work for disabled benefit claimants by allowing them to try employment without immediately losing their benefits. 

Legislation laid on 9 April 2026 means that starting work or volunteering will no longer automatically trigger a benefit reassessment for claimants of new‑style Employment and Support Allowance, Personal Independence Payment and the Universal Credit health element. 

The changes, which will come into force at the end of April, respond to evidence that fear of reassessment deters many disabled people and those with health conditions from attempting work. Government research found that more than a third of disabled people who want to work feel held back by concerns about losing financial support. 

The legislation also protects volunteering from triggering reassessment, recognising its role as a route into employment. 

AI use in recruitment widens trust gap between employers and jobseekers

New research suggests that the rapid adoption of artificial intelligence (AI) in recruitment is creating a growing trust gap between employers and jobseekers. The study found that 47% of UK candidates have used AI tools when applying for jobs, mainly to tailor CVs, draft applications and prepare for interviews. At the same time, 34% said they have experienced employers using AI during the recruitment process.

Employer use of recruitment technology is also increasing. Separate findings referenced in the study show that 78% of organisations expanded their use of recruitment technology in 2023, with 31% now using AI for hiring, up from 16% the previous year. Employers reported benefits including improved hiring efficiency and better access to workforce data.

Despite this, confidence in AI-led recruitment remains limited. The study found that 42% of candidates trust human-led recruitment more than AI-assisted processes, while one in three said human oversight is essential to build trust. 

Welfare reforms introduce expanded support to help claimants into work

The government has announced a package of welfare reforms, in force from 6 April 2026. They are designed to support hundreds of thousands of sick and disabled people into work. 

Under the reforms, financial incentives seen as discouraging work are being removed by narrowing the gap between Universal Credit payments for those assessed as having limited capability for work and those actively seeking employment. For new claimants, the Universal Credit health element will be set at £217.26 per month, compared to the previous higher rate of £429.80. Existing health‑related Universal Credit claimants, people with the most severe or lifelong conditions and those nearing end of life will continue to receive the higher rate.

Alongside these changes, the government is investing £3.5 billion in employment support, including personalised, voluntary assistance for disabled people and those with long‑term health conditions. 

Debts cancelled for unpaid carers 

Tens of thousands of unpaid carers will have historic Carer’s Allowance debts reduced, cancelled or refunded following a government reassessment prompted by unclear official guidance. The Department for Work and Pensions will review more than 200,000 cases dating back to 2015, after it was found that carers with fluctuating earnings often exceeded the weekly limit without realising, leading to unexpected overpayments.

The government estimates around 25,000 carers will benefit from debt write‑offs or refunds. Most carers do not need to take action, as the DWP already holds the relevant information and will contact individuals if they need further details. 

The move follows the government's acceptance of most recommendations from the independent Sayce Review and sits alongside recent increases to the Carer’s Allowance earnings threshold.

Nearly half of UK employees say they experience daily stress at work

Almost half of UK employees report feeling stressed on a daily basis, according to new research by Gallup. The State of the Workplace 2026 report found that 46% of UK workers said they experienced stress “a lot” during the previous day, marking the highest level recorded since Gallup began tracking workplace stress in 2010.

The figure represents a rise from 41% last year and sits well above the European average of 39%. The report also found that stress levels among UK workers now exceed those recorded during the Covid-19 pandemic, suggesting more deep‑rooted issues in how work is organised and experienced. Alongside high stress levels, the research shows low engagement, with just one in 10 UK employees reporting that they felt engaged at work in 2025.

Unemployment could rise to 2.1 million 

UK unemployment could rise to 2.1 million next year as employers rein in hiring in response to ongoing international conflict, according to new forecasts from the EY Item Club. 

Economists predict the unemployment rate will climb from 5.2% before the conflict to 5.8%, driven by surging energy prices and supply chain disruption. The Item Club warns these pressures could trigger a shallow recession later this year and lead to businesses cutting jobs, pushing almost 250,000 more people out of work. 

The report says higher oil prices will also impact economic growth, with the UK economy forecast to expand by 0.7%, down from 1.4% last year. Consumer confidence has also weakened, with households delaying major purchases amid rising living costs and economic uncertainty.

Victims of workplace abuse to be free to speak out

The government has launched a consultation on new measures to prevent employers from using non‑disclosure agreements (NDAs) to silence victims and witnesses of workplace harassment and discrimination. The proposals aim to stop NDAs being misused to pressure workers into silence, while still allowing confidentiality clauses to protect genuine commercial interests. They would ensure that NDAs cannot prevent individuals from speaking about their experiences or supporting others who have been affected.

The government has also confirmed plans to review the whistleblowing framework later in the year, as part of a broader commitment to protect workers who raise concerns about wrongdoing at work and to end a culture that allows abuse to go unchallenged.

EHRC Code of Practice update following Supreme Court ruling

Bridget Phillipson has updated Parliament by way of a written statement on the Equality and Human Rights Commission’s (EHRC) Code of Practice on Services, Public Functions and Associations, following the Supreme Court’s decision in For Women Scotland v Scottish Ministers on single‑sex spaces being based on biological sex. 

The government says that it received the updated draft code on 13 April 2026 and expects to lay it before Parliament in May 2026.

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