Reform UK has announced a proposal to eliminate taxes on overtime hours worked, describing the policy as a way to incentivize additional work and boost economic productivity. The party estimates the measure would cost approximately £5 billion annually in lost tax revenue.

To offset this fiscal impact, Reform UK suggests the policy could be funded through reductions to welfare spending. The party has not yet provided detailed specifics on which welfare programs would face cuts or the timeline for implementation.

The proposal comes amid broader discussions about welfare reform in the UK. Alan Milburn, a former Labour health secretary, has criticized current welfare spending patterns, describing as "shameful" the situation where more public money is spent on benefits for young people than on job creation and training programs.

Milburn has called for comprehensive reforms to the welfare system to address what he characterizes as high numbers of young people who are not in work, education, or training. His comments reflect ongoing political debate about how to balance social support with incentives for employment and skills development.

The Reform UK proposal represents part of the party's broader economic platform ahead of future elections, though the policy would require parliamentary approval to be implemented. Opposition parties and welfare advocacy groups have yet to respond publicly to the specific overtime tax elimination proposal.