In Plain English
AI-generatedThis Bill would stop public sector workers who pay the higher rate of income tax from receiving any bonus payments. It would apply to all public sector employers and their bonus schemes, with the aim of limiting bonus pay for higher earners in the public sector.
Key Points
- Bans bonus payments to higher-rate taxpayers working in the public sector.
- Applies across all public sector employers, including government departments, the NHS, local authorities, schools, police, and other public bodies.
- Covers all forms of bonus payments provided by public sector employers, including discretionary and contractual bonuses.
- Sets out enforcement provisions and potential penalties for non-compliance, to be defined in the Bill.
- Intended to reflect a policy that public sector pay structures should be limited for higher earners in line with broader tax considerations.
Progress
The bill is currently at the second reading in the House of Commons. If it progresses, it would move to committee stage and later readings in the Commons, followed by consideration by the House of Lords.
Who is affected?
Public sector workers who are higher-rate taxpayersPublic sector employers and their payroll/HR teamsPublic sector organisations (e.g., government departments, NHS bodies, local authorities, schools, police, fire services)HM Revenue & Customs and other enforcement bodiesPublic sector trade unions and professional associations
Generated 21 February 2026
