The present statutory minimum entitlement to paid holiday is four weeks, which can include the 8 statutory bank holidays.

The government is proposing to increase the entitlement to 5.6 weeks with a maximum of 28 days (someone on a 6-day week it will still only receive 28 days). In essence what the government are doing is adding the eight bank holidays onto the existing 20-day allowance.

The increase will be brought in in two stages with an increase from four to 4.8 weeks from October 2007 and from 4.8 weeks to 5.6 weeks from October 1, 2008.

Employers will be obliged to change contracts of employment to reflect the increases but we assume it is unlikely any employee will object.

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