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UK Edition
9th July 2025
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THE HOT STORY

Streeting warns against new doctor strikes

Health Secretary Wes Streeting has warned BMA junior doctors that the public “will not forgive” a new wave of strikes, firmly stating no further pay rises will be offered. Doctors have voted for six more months of strikes, demanding a 29% increase. NHS leaders warn of “mass patient suffering” and disruptions to the new ten-year NHS plan. Despite 90% voting for strikes, turnout was only 55%, meaning just one-third of resident doctors backed action. Mr Streeting said: “It doesn’t even command majority support among BMA resident doctors.” Doctors received 5.4% this year and 22% last year—the highest public sector increases. A recent poll found only 21% of voters support renewed strikes, while 56% oppose them.
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EMPLOYEE BENEFITS

New research | What do employees really want from their benefits?

Employees say benefits matter, but many still aren’t seeing the full picture. 69% of global employees say that benefits are having a positive impact on their life, but 62% still say it’s hard to see the full value.

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Explore the big questions: Who’s winning in reward & benefits? Is increased investment in benefits paying off? What do employees really want from their benefits? Should we be excited or terrified by AI in HR?  

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REMUNERATION

UK, Germany lead wage growth

In May 2025, nominal wage growth reached 5.5% in the UK, 5.3% in the Netherlands, 3.8% in Germany, and 1.9% in France, according to Indeed. Adjusted for inflation, real wage increases stood at 2.3% in the UK, 1.8% in the Netherlands, 1.6% in Germany, and 1.1% in France. Legal roles topped the list of wage growth, rising 5.7% in Germany and 4.3% in the UK. UK lawyers earn an average of £53,420 (€61,900), with London-based lawyers reaching £70,450 (€81,670). France’s top sectors were management and public safety (2%), while the Netherlands saw a 4% rise in cleaning roles. UK retail, manufacturing, and customer service jobs posted real wage increases of 3% or more, while health-related roles saw modest gains. Wage pressure stems from factors including a higher minimum wage, low immigration, and high economic inactivity. Meanwhile, Germany’s IT roles suffered sharp declines—helpdesk (-6.4%) and software development (-4.2%)—indicating real wage losses in tech sectors.
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WORKFORCE

Companies plan major overhaul of employee pension provisions

New research from LawDeb Pensions reveals a significant shift in the UK’s defined contribution (DC) pension schemes, with 80% of businesses planning to change their provision type. The study indicates a trend towards consolidation and specialised management, with 63% of firms expecting to transition to a master trust or own trust. Key drivers for this change include the pursuit of better value for money, with 50% of firms citing this as their main motivation, alongside the need for robust governance and evolving regulatory pressures. The upcoming Pensions Schemes Bill is expected to further impact the DC market, necessitating careful consideration from businesses.

Tax office's flawed crackdown hits low earners

HMRC has imposed late penalties on 600,000 low earners, many of whom owe no tax. The automatic £100 fine for missing the January 31 deadline can escalate to over £1,600. Dan Neidle from Tax Policy Associates highlighted that "the Government should act, and stop the most vulnerable in society having their lives made harder by HMRC." A Freedom of Information request revealed that those with no tax liability are more likely to incur penalties. The Low Income Tax Reform Group (LITRG) warned of a "two-tier" system, where low earners face higher penalties. Antonia Stokes from LITRG urged HMRC to expedite the new penalty regime rollout to benefit all taxpayers. HMRC stated that 11.5m customers filed their 2023-24 tax return on time and encouraged those who believe they have been wrongly fined to appeal.

Charities slam Universal Credit cuts

Charities are raising alarms over proposed universal credit cuts, claiming they will adversely affect many severely disabled individuals. Ayla Ozmen, director of policy and campaigns at Z2K, said: “We have real fears that many disabled people with lifelong conditions that severely impact their daily lives will not in fact be protected from the cuts.” The severe conditions criteria (SCC) in the legislation are deemed too narrow, only covering those with constant health conditions, which excludes many with fluctuating illnesses like Parkinson's and multiple sclerosis. James Taylor from Scope highlighted that the SCC's reliance on NHS diagnoses could further marginalise those with private diagnoses. The government's own impact assessment suggests that only 200,000 individuals will be protected, representing less than 8% of current claimants. Julia Modern from Inclusion London condemned the plan as “seriously flawed” and lacking input from disabled communities.

Unhappy shift workers: a growing concern

The latest analysis reveals that a significant number of shift workers in the UK are experiencing high levels of unhappiness and stress. According to a report, 37.8% of surveys from workers in medical clinics reported feeling "unhappy" or "stressed." Emma Seymour, chief financial officer at Deputy, said: "This year's report highlights one of the UK's most pressing issues: healthcare workers are nearing breaking point." In contrast, workers in the tobacco and vape industry reported feeling "good" or "happy" 93% of the time. The findings underscore the urgent need to address the root causes of burnout among critical workers.
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HIRING

Government's teacher recruitment plan in doubt

The Public Accounts Committee (PAC) has raised concerns about the Department for Education's (DfE) ability to meet its pledge of recruiting 6,500 new teachers by the end of the parliamentary term. The PAC report states that the DfE “lacks a coherent plan” and suitable targets, making it “unclear” how the government will address the estimated need for up to 12,400 additional teachers by 2028/29. The report highlights that workload and pupil behaviour are significant factors driving teachers away from the profession, particularly in disadvantaged areas. Liberal Democrat MP Sarah Olney emphasised the urgency for the DfE to clarify its recruitment strategy, while Education Secretary Bridget Phillipson announced a 4% pay increase for teachers. The PAC urges the DfE to explore flexible working conditions and pay adjustments to improve teacher retention and recruitment.
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LEGAL

Horizon victims suffered deep trauma

The first report from Sir Wyn Williams’ inquiry into the Post Office Horizon IT scandal highlights devastating human impacts, including mental health crises, addiction, and suicide. At least 59 people considered suicide, 10 attempted it, and over 13 may have died due to wrongful prosecutions. Sir Wyn found that many victims experienced divorce and long-term trauma, stating, “One postmistress said she ‘went to rehab for eight months as the Post Office had turned her to drink.’” He condemned slow, adversarial compensation processes and called for reforms, including legal aid, support for families, and restorative justice. Around 10,000 people are currently seeking redress, a number expected to grow.

Theresa May fights for trafficking victims

In a passionate address to Parliament, Tory former prime minister Theresa May stressed that victims of modern slavery must not be "abandoned" due to fears of creating legal loopholes. Speaking during the scrutiny of the Border Security, Asylum and Immigration Bill, she expressed concern that trafficking victims could be inadvertently criminalised under the proposed legislation. May said: "We cannot simply say that we abandon those in slavery, or those who are being exploited, because we are worried about a loophole." She called for the inclusion of "duress of slavery" as a legal defence for victims coerced into committing immigration offences. Despite concerns from her own party about potential exploitation of such provisions, May argued that existing mechanisms could effectively differentiate between genuine victims and criminals. 

Crackdown on illegal construction workers

The Home Office has intensified its crackdown on illegal workers in the UK, resulting in the arrest of 20 Indian construction builders. This operation, conducted in collaboration with the Metropolitan Police, targets industries suspected of employing migrants without the right to work. Eddy Montgomery, Director of Enforcement, Compliance and Crime, said: “Our dedicated Immigration Enforcement officers have been ramping up action to disable illegal working across the board.” The government warns businesses that hiring illegal workers could lead to fines of up to £60,000 per worker and potential prison sentences. New legal requirements will mandate companies to verify the legal right to work for all hires.
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WORKPLACE

Belgium ranks third in work-life index

Belgium secured third place in Remote's 2025 global work-life balance index, trailing only New Zealand and Ireland. The index evaluates 60 high-GDP countries based on factors like paid leave, minimum wage, and overall happiness. Belgium’s €12.82 hourly minimum wage is among Europe’s highest, topped only by the UK and Germany. Employers with 20+ workers must uphold a “right to disconnect” policy. Seven of the top ten nations were in Europe, including Germany, Norway, and Denmark. The US ranked 59th, while Nigeria came last. Work-life balance now ranks equally with job security as a top priority for workers globally.
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TAX

Wealth tax could drive entrepreneurs away

City leaders, including Sir Martin Sorrell and Sir Rocco Forte, have expressed concern that a proposed wealth tax could lead to a significant exodus of entrepreneurs from the UK. Sir Rocco said: "Labour has already seen a huge exodus of wealthy people," warning that the tax would exacerbate this trend. S4 Capital's Sir Martin Sorrell added that it would not only drive away the wealthy but also those aspiring to accumulate wealth. Former RBS chair Sir Philip Hampton described the policy as "very anti-growth," stressing that it would deter investment in the country. Meanwhile, Labour figures, including transport secretary Heidi Alexander, argue that those with "the broadest shoulders" should bear the highest tax burden, aiming for fairness in taxation while promoting economic growth.
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PRODUCTIVITY

Microsoft's AI memo sparks urgency

A recent internal memo from Microsoft has emphasised the necessity of AI skills for employees, stating that "if you're not working with AI, you're falling behind." The memo encourages teams to integrate AI tools like GitHub Copilot into their daily workflows to enhance productivity and problem-solving. It highlights the importance of "AI fluency" alongside human capabilities such as creativity, critical thinking, and ethical reasoning. The memo signals a broader shift in expectations for knowledge workers, urging them to consider not just how to use AI, but how to collaborate effectively with it.
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CORPORATE GOVERNANCE

Activism set to spike as dealmaking lifts

Investor campaigns among activist shareholders have seen a significant decline, dropping 32% from last year, with only 59 campaigns launched in Q2 2025. However, experts predict a resurgence in the latter half of the year, as "activity in the back half of the year will be more significant," according to Alfredo Porretti of JPMorgan Chase. Companies are preparing for potential challenges, with board members hiring advisors to assess vulnerabilities. The favourite demand from activists has been for board changes, which appeared in 43% of campaigns in the first half of 2025. As the market stabilises, there is growing confidence that demands for sales or spin-offs will increase, with a shift towards quieter settlements rather than public confrontations.

Futura Medical in leadership shake-up

Futura Medical has undergone a significant leadership change following a profit warning and a sharp decline in share price. Jeff Needham, the chairman, and James Barder, the chief executive, have been removed from their positions at the request of Lombard Odier, the company's largest shareholder with over 28% ownership. Alex Duggan, a former executive at Alliance Pharma, is set to take over as interim chief executive, potentially paving the way for a sale of the company. Following the announcement, Futura's shares rose by 3.1%, although they remain down 78% over the past year due to disappointing sales of its erectile dysfunction treatment, Eroxon.
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INTERNATIONAL

Supreme Court greenlights Trump’s job cuts

The US Supreme Court has permitted Donald Trump's administration to proceed with mass job cuts across federal departments, overturning a previous ruling by District Judge Susan Illston, who argued that Trump had overstepped his authority. The justices determined that the administration was "likely to succeed on its argument that the executive order" regarding workforce reductions was lawful. These cuts, described by Trump as a "transformation of the federal bureaucracy," could impact hundreds of thousands of jobs across various agencies, including the Departments of Agriculture, Commerce, and Health and Human Services. Justice Ketanji Brown Jackson dissented, labelling the court's decision as "hubristic and senseless".
 
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