Under the proposals, statutory annual leave entitlement would be increased in two stages, rising from 20 to 24 on 1st October 2007 and from 24 to 28 days 1st October 2008.  Some employers currently include the 8 bank holidays as part of workers' 20-day annual leave entitlement.  However, this minimum allowance is much less generous than that provided in other European countries.

The DTI found that group standing to benefit most from the changes include women, part-time workers, low paid workers and workers from minority ethnic communities.  The cost to business is expected to be around £4 billion per year, or 0.4% of the wages bill.  The Government's second consultation closes on 13 April 2007.