KEY WORKERS could be set to lose out on hundreds of pounds a year after the government suggested changing how holiday pay is calculated, according to new analysis.    

Currently, employers have to include regular overtime when calculating a worker’s weekly holiday pay.

Scrapping the holiday pay entitlement rule means that holiday pay will only be calculated from a base hourly rate, without overtime.   

A worker whose weekly base rate of pay is £250 a week, but who usually earns £300 due to regular overtime, would only have their weekly holiday pay calculated from the former amount if ministers scrap the rule. 

Average full-time care workers could lose £240 a year under the change being considered by the Tory government, Labour said.

An average full-time worker in food and drink processing could lose out on £500 a year, and the average full-time police officer could lose out on £308 a year, the party added.

Labour will force a Commons vote on Monday to call on ministers to guarantee that there are no plans to change holiday pay entitlements, the 48-hour work week, or legal rest breaks.   

Shadow business minister Lucy Powell said: “Ministers are already freezing key workers’ pay, cutting universal credit, and cutting corners on free school meals.

“Now they’re considering changes which would leave many key workers hundreds of pounds out of pocket and risk the financial security of families.

“And all in the middle of a pandemic and economic crisis.   

“It’s a disgrace that this government would clap key workers on the front step and try and take away their rights and pay via the backdoor.

“Conservative MPs have a chance to stand up for key workers and protect their hard-earned holiday pay. They must take it.”