Labour accused of £37m union payback through controversial Employment Rights Act

Labour accused of £37m union payback through controversial Employment Rights ActLabour has been accused of handing a £37million favour to trade unions through the Employment Rights Act, critics say amounts to payback for bankrolling Starmer Share Article Share Article Facebook X LinkedIn Reddit Bluesky Email Copy Link Link copied Bookmark Add us as preferred source Comments By Aaron Newbury, Political Correspondent 07:01, Mon, Jun 1, 2026 Starmer accused of union payback scheme (Image: Getty)Labour has been accused of handing a £37 million favour back to trade union barons who bankrolled Sir Keir Starmer's march on Downing Street. The Employment Rights Act, a law backed by the very unions that poured millions into the party's election war chest, contains a provision which critics say will funnel more cash back to Labour. window.scriptsToLoad.push({url:'https://live.primis.tech/live/liveView.php?s=118222&vp_content=plembed3a6btjknzwqh&cbuster=%%CACHEBUSTER%%&playerApiId=v118222',triggeredBy:'tcfLoaded',delay:1500,containerId:'ovp-primis',title:"Primis player",beforeLoad:()=>{window.top.addEventListener('primisPlayerInit',e=>{try{if(e.detail&&e.detail.playerApiId==="v118222"){if(window.document.getElementsByClassName('jwplayer')[0]){e.detail.float('disable')}}}catch(e){}})},}) Under the controversial legislation employees would automatically be signed up to see part of their union dues ringfenced for political funds, reversing the current system where workers must actively choose to opt in. Four of the unions that back the bill have also given generously to the Labour Party since Sir Keir became leader in 2020. Unite donated £9.4million, UNISON £8.5million, GMB £8million and USDAW £5.6million, to the parties war chest. Article continues below ADVERTISEMENT Get the latest politics news - straight from our team in Westminster and more Subscribe Invalid emailWe use your sign-up to provide content in ways you've consented to and to improve our understanding of you. T...