We round up the latest employment news.
Hybrid working on the rise despite office return push
Hybrid working continues to gain ground across the UK, even as some employers push for a return to the office, according to new data from the Office for National Statistics (ONS). Between January and March 2025, 28% of working adults reported splitting their time between home and the workplace.
The ONS survey highlights a clear divide in access to hybrid work. Higher earners, university graduates, and those living in less deprived areas are significantly more likely to benefit from flexible arrangements. For instance, 45% of workers earning over £50,000 reported hybrid working, compared to just 23% of those earning £20,000 to £30,000.
The data also reveals disparities among disabled workers. While hybrid work is most common in senior roles, only 30% of disabled individuals in these positions reported hybrid working, compared to 48% of their non-disabled peers.
Market struggles with poor-quality job applications
Only 30% of UK recruiters say they receive low-quality job applications, according to new research by Totaljobs.
Despite advances in recruitment technology, nearly two-thirds (63%) of recruiters still manually sift through hundreds of CVs and cover letters. Many report being overwhelmed and say that standout candidates are hard to spot. Strict requirements – such as long tenures, experience at top-tier firms and no employment gaps – are also excluding potentially strong applicants.
Artificial intelligence is playing a growing role in the application process. Around 67% of candidates now use AI to tailor their CVs, and 65% use it to refine cover letters. While 82% of recruiters say AI has improved the professionalism of applications, 74% feel these submissions lack authenticity.
New welfare bill
The UK government has introduced a new welfare bill designed to strengthen protections for vulnerable people and provide financial support to millions of households.
Key measures include:
- Uprating Universal Credit
- Providing a 13-week financial protection for those affected by changes to Personal Independence Payment (PIP), including carers; and
- Exempting over 200,000 people with severe, lifelong conditions from being reassessed.
The Universal Credit and Personal Independence Payment Bill also forms part of a broader £1 billion employment support package aimed at helping people into work and reducing long-term benefit dependency.
Key challenges in managing flexible working requests
A year after the introduction of the legal right to request flexible working from day one, most UK employers feel confident handling requests, but some areas remain problematic, according to new insights from Acas.
A YouGov poll commissioned by Acas found:
- 90% of employers feel confident holding consultation meetings
- 88% are confident meeting the two-month decision deadline
- Only 16% feel confident handling appeals
- Just 10% are confident identifying disability-related adjustments; and
- Only 9% are confident about integrating new arrangements into workflows.
Acas advises employers to offer appeals proactively and appoint independent managers to review decisions. It also stresses the importance of recognising when flexible working requests relate to legal obligations under the Equality Act 2010.
Charities urge EHRC to extend consultation on code of practice following biological sex ruling
Over 20 charities and service providers, including Refuge, Mind and the Samaritans, have called on the Equality and Human Rights Commission (EHRC) to double the consultation period for its statutory code of practice for services, public functions and associations, following the Supreme Court’s ruling in For Women Scotland v Scottish Ministers.
They argue that the current six-week consultation is too short to address the complex legal and practical implications of the ruling. They're urging the EHRC to extend the period to 12 weeks to ensure the resulting guidance is “robust, trusted, and balanced.”
A judicial review by Liberty seeking the same extension was recently rejected by the High Court. EHRC Chair Kishwer Falkner defended the timeline, citing the need to provide clarity as quickly as possible and saying that it had already received thousands of responses.
One-third of UK firms plan job cuts after National Insurance hike
A recent survey reveals that a third of UK businesses are planning further job cuts following the April 2025 rise in employers’ National Insurance contributions (NICs). The poll of 500 business owners found:
- 20% have already reduced staff due to the NIC increase
- 33% plan further redundancies
- 24% have cut working hours, with 35% intending to
- 22% have frozen pay, and 29% plan to; and
- 21% have paused recruitment, with 35% more expected to follow.
Declining health threatens future employment for young UK workers
A new survey by Lancaster University’s Work Foundation reveals that 43% of UK workers aged 16 to 24 fear their health could force them out of work in the future.
Key findings include:
- One-in-five UK workers report being in poor health
- Young workers are 1.5 times more likely to report poor mental health than other age groups
- 34% of young workers say their job negatively affects their mental health; and
- Only 46% of low-income workers feel confident taking sick leave.
The report warns that without urgent action – such as better access to flexible working, occupational health services, and tailored employment support – a generation of young workers could face long-term unemployment and economic hardship.
Demands for broader legal safeguards for public-facing workers
UK business leaders are calling on the government to strengthen legal protections for all public-facing workers amid a sharp rise in abuse and violence.
New figures from the Institute of Customer Service reveal that 42% of staff in sectors such as hospitality, retail, and transport experienced abuse between October and March – a 19% increase on the previous year. Figures show that 37% of workers considered quitting due to abuse, including racial and sexual harassment and over 25% took sick leave following incidents.
While the government plans to introduce a specific offence for assaulting retail workers under the Crime and Policing Bill, 76 businesses, including Sky, Virgin Media, O2 and Wickes, have signed a letter urging ministers to extend protections to all customer-facing roles.
New data law received Royal Assent
The UK’s new Data (Use and Access) Act 2025 has received Royal Assent, introducing major updates to data protection laws aimed at helping organisations innovate while safeguarding personal information.
The ICO has published guidance to help organisations prepare as the law is phased in over the next year.
ICO launches new AI and biometrics strategy
The UK Information Commissioner, John Edwards, has unveiled a new AI and biometrics strategy aimed at helping organisations innovate responsibly while protecting the public. The strategy outlines how the Information Commissioner’s Office (ICO) will guide the ethical use of emerging technologies.
Key elements include:
- A statutory code of practice for AI and automated decision-making (ADM)
- Support for developers using personal data to train generative AI models
- A focus on fair use of ADM in recruitment and public services; and
- Oversight of facial recognition technology (FRT) in law enforcement.
Read more – June 2025
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