What are the new laws and policies coming into effect in 2025?

The prime minister has promised that 2025 will be a ‘year of change’

The start of 2025 marks seven months of the new Labour government which stormed to victory in July’s general election. Running on a promise of change, the party pledged some major new legislation, with changes to taxation, the workplace and housing all on the table.

But polls would suggest the new government has got off to a rocky start. Some controversial early decisions have left voters less sure of the direction Sir Keir is taking the country. Measures such as changes to the winter fuel payment and the ‘tractor tax’ largely not sitting well, analysis shows, with many still waiting for the promised change.

However, bills which bring big changes to the law generally do not pass overnight. Consulations, lobbying, and the long back-and-forth of voting and scrutiny means that many of Labour’s biggest changes are set to come into force this year.

Here’s a look at some of the major new laws we can expect to see in 2025:

Tax changes – from non-doms to national insurance

Before coming into power, Labour promised it would not increase taxes on ‘working people’ and has strived to keep the pledge. But that does not mean all have been spared from tax increases.

Changes to the rules around non-domiciled individuals will come into force from April, delivering one the party’s headline election campaign pledges. Under the current rules, these ‘non-doms’ are able to only pay UK tax on their income made in the country. An estimated 37,000 are taking advantage of the loophole.

Sir Keir Starmer PM (Jacob King/PA) (PA Wire)

Labour says the change will raise around £1bn for government coffers in its first year.

Another signifcant tax change comes in April as employer national insurance contributions (NICs) are increase by 1.2 points, from 13.8 to 15 per cent. The tax is the contribution paid by employers on top of their employee’s wages. The chancellor also confirmed Labour will cut the earnings threshold at which employers start paying this levy from £9,100 to £5,000.

The government has insisted the measure is not a tax on working people, although some economists argue that the extra cost for employers will inevitably result in lower in wage growth in the near future. The Treasury forecasts that change will raise a net £19 billion in its first year.

The controversial ‘tractor tax’ on farmers’ inheritance will not be coming until next year, in April 2026.

Renters’ Rights Bill

Currently in its early stages, the Renters’ Rights Bill promises a slate of reforms to the rental sector that will largely benefit tenants. It has been spearheaded by deputy prime minister and housing secretary Angela Rayner.

The central change laid out in the bill is the banning of Section 21 ‘no-fault’ evictions, delivering on a promise first made by the Conservatives back in 2017. This piece of leglisation currently gives landlords the right to evict rental tenants at two months notice without needing to give any reason. It has long been cricitised by campaigners for the lack of security it affords renters.

Rachel Reeves, Yvette Cooper, and Angela Rayner during a trip to Yarm, near Middlesbrough (Stefan Rousseau/PA) (PA Archive)

Other changes include longer notice periods to find a new home if they are evicted, protection against ‘backdoor evictions’ via rent rises, protection from discrimination, and improved housing standards.

New tobacco and vaping laws

The government’s Tobacco and Vapes Bill is also set to become law later this year, making a range of changes to smoking and vaping in the UK.

Perhaps the most significant is the phasing out of smoking in the UK, as younger generations are barred from ever purchasing tobacco. When the bill becomes law, the legal age to buy cigarettes will effectively be raised each year, with those born on 1 January 2009 or later to be the first to never be able to legally buy them in the UK.

The bill will also extend the outdoor smoking ban to some outdoor spaces, such as outside playgrounds, hospitals and schools.

For vapes, a new ban on advertising and sponsorship will come in, as well as restrictions on flavours, displays and packaging. This is largely to prevent the products from being marketed to children.

Separate legislation will also ban all disposable vape products in the UK from June.

Worker’s rights and minimum wage boost

Labour also plans to bring in a raft of changes to the workplace as part of its Employment Rights Bill, which is also due to pass this year.

The legislation will make parental leave, sick pay and protection from unfair dismissal all available from day one of the job for all workers. It will also end ‘exploitative’ zero-hour contracts, and controversial ‘fire and rehire’ practices.

Work and Pensions Secretary Liz Kendall (Lucy North/PA) (PA Wire)

And in welcome news for the millions of workers in the UK earning minimum wage, there will be a 6.7 per cent boost to the hourly rate from £11.82 to £12.21 in April. This is three times higher than September’s 1.7 per cent inflation rate, which usually dictates the increase. However, the figure stood at 2.2 per cent in August and had shot back up to 2.6 per cent by November.

Labour has also delivered on its pledge to narrow the gap for younger workers on the minimum wage, with rates increasing 16.3 per cent to £10 per hour for 18-to 20-year-olds, and 18 per cent to £7.55 per hour for 16- and 17-year-olds.

Online Safety Act

Major new rules for social media companies are set to be come into force in 2025 as the Online Safety Act comes into effect.

Social media companies have until 17 March this year to comply with new Ofcom regulation around safety measures for online users. The slate of new rules is designed to combat online content which is illegal and/or harmful to children.

The communications regulator has also been given new powers to enforce the legislation. Companies can be fined up to £18 million or 10 per cent of their revenue worldwide (whichever amounts to more) for failure to comply and criminal action can even be taken against senior managers in extreme cases.