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Employee Share Ownership (Reform) Bill

A Bill to make provision for a new employee share ownership scheme allowing preferential access for lower income workers; to reduce the Share Incentive Plan holding period from five to three years; to require companies to include declarations in annual reports about the type of employee sharer ownership plans that are operated and the level of employee take up; and for connected purposes.

Originating House

House of Commons

Parliament last updated

1 November 2023

In Plain English

AI-generated

May contain errors — check source documents for definitive information.

This bill would set up a new employee share ownership scheme that gives preferential access to lower-income workers. It would also cut the holding period for the existing Share Incentive Plan from five years to three, and require companies to report in their annual reports on the types of share ownership plans they run and how many employees participate. The bill is currently at the first reading in the House of Commons.

Key Points

  • Introduces a new employee share ownership scheme with preferential access for lower-income workers
  • Reduces the Share Incentive Plan (SIP) holding period from five years to three years
  • Requires companies to declare in annual reports the types of employee share ownership plans they operate and the level of employee take-up
  • Aims to boost employee ownership and transparency; currently at 1st Reading in the Commons

Progress

The bill is at the 1st Reading stage in the House of Commons and has yet to progress to further readings, committee consideration, or the Lords.

Who is affected?

Lower-income workers who would have preferential access under the new schemeEmployees who participate in employee share ownership plansEmployers and companies offering employee share ownership plansCorporate reporting and compliance teams responsible for annual reporting on employee share plans

Generated 21 February 2026

Bill Stages

1st readingCommons

8 Nov 2022

2nd readingCommons
Committee stageCommons
Report stageCommons
3rd readingCommons
1st readingLords
2nd readingLords
Committee stageLords
Report stageLords
3rd readingLords
Royal Assent

Updates & Documents

News (1)

Employee Share Ownership (Reform) Bill

31 Jan 2023

The 2022-2023 session of Parliament has prorogued and this Bill will make no further progress.

Parliamentary Votes (0)

No recorded votes for this bill yet.