The wait is over, and it is indeed good news! On the 8th of November 2023, the Department for Business and Trade published its responses to the two consultations which ran earlier this year.
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The government won't proceed with the proposal to introduce a 52-week holiday entitlement reference period, and instead entitlement will be calculated as 12.07% of hours worked in a pay period for irregular hours / part-year workers only.
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Rolled-up holiday pay will be allowed, but for irregular hours / part-year workers only. This means employees get an additional amount on top of their normal hourly rate of pay, with the additional amount intended to represent their holiday pay, instead of them taking the time off.
These changes will be implemented through legislation and are expected to come into effect in 2024. Holiday pay provisions will apply to holiday years commencing on or after 1 April 2024.
Reference: https://www.gov.uk/government/consultations/calculating-holiday-entitlement-for-part-year-and-irregular-hours-workers