Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether he plans to take steps to reform the way in which HMRC calculates holiday pay entitlements owing to their staff in the context of the Employment Appeal Tribunal ruling in the case of Dudley Metropolitan Borough Council v Willetts and Ors 2017; and if he will make a statement.

HMRC has already made the necessary reforms in line with the legal ruling Dudley Metropolitan Borough Council v Willetts and Others 2017, where regular voluntary overtime and similar payments are now included in the daily rate of pay for statutory holidays taken each year.

HMRC has paid holiday pay arrears to qualifying current and former employees for the period 1 April 2017 to 31 August 2021.

Holiday payments due from 1 September 2021 have been paid to employees in real time by HMRC’s new automated pay system.