Healey Accused of 'Political Bung' with £40 Million for Unions
Critics claim funding for the Union Learning Fund, revived by Chancellor John Healey, will empower unions against employers amid new workers' rights legislation.
Chancellor John Healey has been accused of providing a political "bung" to Labour's allies by allocating £40 million to unions. This funding is designated to revive the Union Learning Fund, a scheme previously cut by the Conservatives in 2021.
The Trades Union Congress stated that the renewed fund will "promote activity by trade unions to encourage greater take up of learning in the workplace." However, critics have raised concerns that the timing of this allocation, coinciding with new workers' rights laws enacted by Housing Secretary Angela Rayner, could lead to taxpayer money being used to pressure employers.
Shadow Chancellor Andrew Griffith criticized the move, calling it a "political bung to Labour's political allies." He added, "Hard-pressed families get cheaper gherkins while Labour's trade union friends get a £40 million giveaway. With the red-tape (Un)Employment Act already costing jobs, this will just help unions browbeat businesses further."
During its previous operation, the Union Learning Fund supported over 50 unions across more than 700 workplaces over 23 years. According to reports, nearly half of non-union members who participated in training through the fund eventually joined a union. Labour aims to leverage the fund to "draw on trade unions' trusted workplace relationships to access training" and improve workplace learning.
Conservative arguments against the fund have previously centered on its potential to "channel money into the TUC." The renewed focus on workers' rights follows the introduction of new measures, including a "banter ban," unlimited compensation claims, and liberalized strike laws.
A government spokesperson defended the decision, stating, "The case for restoring the Union Learning Fund is simple: it works." The spokesperson highlighted its past success in supporting approximately 180,000 workers annually and its proven track record in skills development. The government also indicated that the fund would help workers adapt to AI and develop future job skills.