Employment news in brief - September 2026

Government confirms end of national digital ID plans

The government has confirmed that its proposed national Digital ID programme has been cancelled. Planned digital-only right to work checks for employers will not proceed.

Employers must still carry out prescribed right to work checks but can continue choosing how to complete them. The government will not require digital-only checks.

Although the wider programme has been abandoned, the government will continue existing digital identity work, including the statutory digital verification services regime, GOV.UK One Login, GOV.UK Wallet and government-issued digital credentials.

Current arrangements for individuals proving their immigration status online, including eVisa holders, will remain unchanged.

Gender bonus gap at 44%

Women receive significantly lower bonuses than men, according to new research from Brightmine. Average annual bonuses are £3,062 for women and £5,442 for men, creating a 44% gender bonus gap.

Men are also more likely to receive a bonus: 14% do so, compared with 9% of women. On average, women receive £2,380 less in bonus pay each year.

Brightmine reported that the disparity becomes more pronounced with age. By the age of 56, men receive average bonus payments of £8,817, compared with £3,769 for women. Some of the largest gaps were identified in the finance and professional services sectors.

Connect to Work programme helps thousands into employment

More than 4,000 people have secured jobs through the government's Connect to Work programme. The scheme supports disabled people and those with health conditions or other complex barriers to employment.

Since its launch, around 25,000 people have joined the programme, with over 4,100 moving into work. Backed by more than £1 billion of government funding, it offers local, one-to-one support, including help with drafting CVs, finding suitable roles, promoting employer engagement and providing support to those people in work. More than a quarter of participants supported between April 2025 and June 2026 were aged between 16 and 24.

Employment tribunal backlog reaches record high despite fewer overall claims

The Ministry of Justice has published the latest tribunal statistics, showing a record backlog of single employment tribunal claims. 

Between April and June 2026, tribunals received 25,000 claims but concluded only 10,000. Single claims rose 28% year on year to 14,000, while disposals fell 6% to 6,100.

Multiple claims tell a similar story. Tribunals received 11,000 receipts across 500 lead cases and concluded 4,100 claims. Although receipts and disposals were both lower than a year earlier, the outstanding multiple-claim workload grew by 3% to 467,000 individual claims across 7,600 lead cases.

Research highlights delays in workplace adjustments for disabled employees

Research from the Office for Equality and Opportunity has identified barriers that can delay reasonable adjustments for disabled employees under the Equality Act 2010.

The study found that most employees who request adjustments receive all or some of what they ask for, but highlighted a number of recurring challenges:

• Knowledge gaps about what reasonable adjustments can be requested and when employers are required to provide them.
• Delays in implementation, with the average processing time for Access to Work claims rising from 28 working days in 2021-22 to 109 working days.
• Fear of negative consequences, including concerns about stigma for employees and, for employers, fears about making the wrong decision and the risk of legal costs and reputational damage.
• Lack of clear workplace procedures, particularly among smaller employers with limited HR resources.
• Perceived cost barriers, despite evidence suggesting that most adjustments are cost-neutral.

New index highlights stark regional divide in youth job opportunities

A new index from the Institute for Public Policy Research has found a sixfold difference in youth job opportunities across Britain, adding to concerns about rising numbers of young people not in education, employment or training.

The newly launched Local Youth Opportunity Index found that young people in Rotherham have access to just 46 suitable job vacancies per 1,000 young adults, compared with 288 vacancies per 1,000 in the Cotswolds. Overall, nine of the ten areas with the strongest youth job opportunities are located in the South of England.

The report also highlights significant variations in apprenticeship opportunities between sectors and estimates that around 110,000 additional apprenticeships could be created each year if the gap between the highest and lowest-performing sectors was reduced.

New global standard launched to support menopause and menstruation at work

Employers can now access a new international standard published by BSI and ISO that provides practical guidance about how they can support employees affected by menstruation and menopause at work. 

Retail sector launches major youth employment drive

Leading retailers have joined forces with the government to expand work experience for young people, with the aim of creating up to 100,000 jobs by the end of this parliament.

A new programme, known as Opening Shift, will offer more than 11,000 work experience placements with major employers including Tesco, John Lewis, Waitrose, Currys and Costa Coffee. Participants will receive two to four weeks of hands-on workplace experience, mentoring and interview support, with placements ranging from 16 to 35 hours per week. 

The Department for Work and Pensions (DWP) will work with Jobcentres to identify eligible young people, while retailers will provide placements and wider employment support. Participants may be offered permanent roles, added to employer talent pools, or signposted to apprenticeships and other opportunities.

UK employers remain cautious about AI in recruitment

UK business leaders are more cautious about using AI in recruitment than their international peers, according to new research from ACCA. The study found that 69% of UK respondents have concerns about AI algorithms to support hiring decisions compared with 48% globally.

Concerns are particularly strong among senior leaders, with 74% of UK board-level respondents saying they lack confidence in how AI is being used in recruitment. This compares with 54% of board-level respondents worldwide. 

The findings come as employers increasingly adopt AI tools to support recruitment processes and candidates use AI-powered platforms to assist with job applications. ACCA warned that this trend is creating greater complexity for recruiters and jobseekers alike. 

Key concerns include algorithmic bias, personal data handling and reduced human interaction during recruitment. The report also highlights growing calls for stronger governance, monitoring and regulation of AI recruitment systems.

Employers still value people skills over AI

Mental health at work worsening as inequalities widen

One in five UK workers is experiencing poor mental health, up 66% since 2009, according to a new report from the Mental Health Foundation.

The report found that work is increasingly contributing to poor wellbeing, with one in six workers reporting that their job is negatively affecting their mental health. Financial pressures have also intensified, with the proportion of workers experiencing financial hardship having doubled over the past decade.

The findings highlight significant inequalities, with young people, those with disabilities or long-term health conditions, and lone parents disproportionately affected by poor mental health and barriers to employment. The report also links shrinking entry-level job opportunities, insecure work and cost-of-living pressures to worsening wellbeing among younger workers.

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