The Plan to Make Work Pay said that the Government wanted to ‘strengthen’ rights and protections for employees subject to TUPE processes. It remains unclear precisely what is meant by strengthening TUPE protections at this stage, however a call for evidence was published on 8 April 2026 seeking responses on stakeholders’ experiences with the current TUPE process and the effectiveness of the regulations, with a view to developing policy proposals and amendments to the regulations in due course.
The call for evidence states that the Government wants to support growth through facilitating smoother mergers and acquisitions, whilst also strengthening the existing rights and protections for employees. It includes questions about the current protections afforded by TUPE, the TUPE process in practice, the ability to vary terms and conditions connected with a transfer, and the cost of TUPE processes. The Government has confirmed that any amendments to the existing regulations will be subject to consultation. In addition, the ERA 2025 introduces reforms in respect of public sector outsourcing. The ERA 2025 contains powers aimed at preventing two tier workforces when public services are outsourced. The Government has said it wishes to reinstate and strengthen the Code of Practice on Workforce Matters in Public Sector Service Contracts (known as the two tier-code) through regulations and a Code of Practice. The provisions will also give the power to make regulations regarding provisions which contracting authorities must take all reasonable steps to ensure are included in relevant outsourcing contracts. Full details are outside the scope of this hub – see the Government’s Factsheet.
Timing and developments
TUPE review
Not included in ERA 2025.
This reform will be part of its longer-term plan as the Government recognises that it will take longer to consider how to make changes and implement them. The call for evidence is open until 1 July 2026 and further consultation is expected ahead of any legislative changes.
Public sector outsourcing
Included in the ERA 2025.
The Government’ roadmap’s updated timeline indicates that these measures will take effect in October 2026.