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• May 26, 2026

2026 Employment Update: Children’s work rules, mileage rates and key changes

In this update, we highlight the key developments employers should be aware of, including upcoming changes under the Children’s Wellbeing and Schools Act 2026, increases to HMRC mileage rates, and opportunities to have your say in the Government’s latest employment consultation.

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Children’s Wellbeing and Schools Act 2026

Following parliamentary “ping pong”, the Children’s Wellbeing and Schools Act 2026 received Royal Assent on 29 April 2026. While primarily focused on education and social care, it also introduces changes to child employment.

We do not yet have confirmed commencement dates for the provisions below, although some elements of the Act are expected to come into force from September 2026. We will provide further updates as details emerge.

Key changes include:

  • Mandatory work permits across all local authorities. All children aged 14–16 will require a local authority work permit to be employed. Previously, this depended on local by-laws. Permit regulations will now be set nationally (e.g. by the Secretary of State or Welsh Ministers).

  • Sunday working aligned with Saturdays. The previous 2-hour Sunday limit has been removed. Children may now work up to 5 hours (age 14) or 8 hours (ages 15–16), in line with Saturday limits.

  • Latest working time extended. The cut-off time for working shifts moves from 7pm to 8pm. The maximum of 2 hours on a school day remains unchanged.

This is not an exhaustive list of all rules relating to child employment. If you are subscribed to our HR service and would like further guidance, please contact our consultant team.

April 2026: Increase to HMRC Mileage Allowance Rate

The HMRC advisory mileage rates have been increased for the first time in 15 years. Previously 45p per mile for the first 10,000 miles in the tax year for cars and vans, the rate has now gone up to 55p per mile for the first 10,000 miles. Miles over the 10,000 threshold remain the same (25p) and there have been no changes to the rates for motorcycles (24p per mile) and bicycles (20p per mile).

Whilst the rate is advisory, you may need to check the expenses/mileage clauses of your employee contracts in case you are contractually obligated to apply the new rate to all mileage claims this tax year. If you are not obligated to apply the new rate and choose not to, employees can claim tax relief to make up some of the shortfall.

Your expenses and mileage policies, as well as payroll systems, may also need updating as a result of these changes, ensuring these are backdated to April 2026.

Reminder to have your say – open consultation

The Government has one consultation still open, relating to the Employment Rights Act 2025 and its plan to “Make Work Pay”. Views are invited from employers, workers, trade unions, and members of the public who may be affected by the new framework. If you would like to get involved in the topic below, you can follow the link and submit your views by the closing date shown:

  • Misuse of non-disclosure agreements (NDAs) - closes: 8th July 2026, link here.

As always, we’ll continue to monitor developments closely and keep you updated.

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