The government is looking at proposals to increase workers’ holiday allowance from 20 days per year to 28.

Research has found that up to six million employees could benefit from the extra days because some employers currently include the UK’s eight bank holidays as part of workers’ minimum annual leave entitlement which is currently 20 days.

The Department of Trade and Industry (DTI) is launching a second public consultation on the implementation of the changes. Statutory annual leave entitlement would be increased in two stages, rising from 20 to 24 days on 1st October 2007, and from 24 to 28 days on 1st October 2008.

Jim Fitzpatrick, DTI minister for employment relations, commented: "Most companies already recognise that good holiday provision makes good business sense. Holiday entitlement can be a key factor in recruiting and retaining staff. Holidays are also important for productivity as they help minimise sick leave and keep people motivated and refreshed.”

An increase would bring the UK into line with the rest of the EU where workers typically enjoy more annual leave.