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UK Edition
8th December 2025
 
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THE HOT STORY

Subsidised jobs push to get young people off benefits

Sir Keir Starmer has called for apprenticeships to be valued equally with university degrees to help young people return to work. The Prime Minister said the "narrow" view that a university degree was necessary to succeed had "held back opportunity." The government plans to invest £820m to address the rising number of young people not in employment, education, or training - a number which is projected to reach 1m. The plan includes funding for training and work experience in construction, hospitality and health and social care for 350,000 people on universal credit. Government-backed guaranteed jobs will be provided for up to 55,000 young people in areas "of the highest need." Pat McFadden, the Work and Pensions Secretary, told Sky News: "What I want to see is young people in the habit of getting up in the morning, doing the right thing, going to work. That experience of that obligation, but also the sense of pride and purpose that comes with having a job."
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HIRING

Firms take 'low hire, low fire' approach

BDO's employment index dropped from 93.95 to 93.53 in November, the weakest level since April 2011, as businesses adopted a "low-hire, low-fire" stance ahead of the Budget. Economic activity worsened overall, with the output index falling sharply from 101.84 to 97.77, its biggest monthly decline since April 2022. The services sector was particularly weak, with output sliding from 102.75 to 98.12 amid inflation pressures and low consumer confidence. BDO’s Scott Knight said: "The run-up to Christmas is usually a golden time where business booms and revenues are shored up, but so far this year it's falling flat."

Hiring subdued amid Budget uncertainty

Hiring activity remained stagnant last month due to Budget uncertainty, according to a report by KPMG and the Recruitment and Employment Confederation (REC). Vacancies fell, continuing a two-year trend, while the number of job seekers surged at the second-fastest rate since November 2020. Meanwhile, permanent salaries increased as companies aimed to attract skilled workers. REC chief Neil Carberry observed signs of potential stabilisation but notes that there is "much more to do to get the economy firing," while Lisa Fernihough from KPMG UK warned that the jobs market "remains stuck in contraction." 
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WORKPLACE

HSBC bans Christmas jumpers

HSBC has told staff not to wear Christmas jumpers due to a need to maintain a sense of professionalism and sensitivity to customers who may be dealing with difficult circumstances. A HSBC spokesman said: "We are encouraging colleagues to celebrate Christmas in branches in lots of different ways, including decorating branches, team celebrations and festive lunches. However, it’s important to also remember that branches are spaces where customers receive a range of specialist services that require professionalism and sensitivity."
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HEALTH & WELLBEING

Health woes push Gen Z towards early retirement

One in three Gen Z workers anticipates early retirement due to health issues, according to a survey by Axa. The survey revealed that 35% of employees aged 16 to 24 expect to stop working early, primarily due to mental health conditions such as anxiety and depression. Heather Smith, chief executive of Axa Health, said: "Poor mental health among younger generations is a troubling driver of early retirement."
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WORKFORCE

BP moves to offset rise in minimum wage

BP will scrap paid rest breaks and most bank holiday bonuses for 5,400 workers in its petrol forecourts from February. The move aims to offset a planned rise in hourly pay from £12.60 to £13.45, in line with the Living Wage Foundation’s fair pay scheme. Employers are not mandated to pay workers for rest breaks and the Guardian points out that, in recent years, retailers such as Asda, Morrisons and Sainsbury’s have cut paid breaks as a way to offset increases in the legal minimum wage, employers’ national insurance and other labour costs.
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LEGAL

Employment judge dismisses frequent flyer's discrimination lawsuit

A woman's attempt to sue the Land Restoration Trust, a charity that manages green spaces, for discrimination based on a belief in social and environmental justice has been dismissed by Employment Judge Kevin Palmer. He ruled that the evidence of Hilary Bannerman, who worked at the trust as a ranger, did not demonstrate a protected philosophical belief under the Equality Act 2010. Bannerman claimed a commitment to sustainability, but the judge found her actions, such as frequent flying for work and holidays, contradicted her beliefs. He said: "Her evidence goes nowhere near showing that she lives by her belief in environmental justice." A preliminary hearing for further claims is scheduled for January 20.

Lloyd's misconduct probe widens further

The Lloyd's of London insurance market faces a deepening crisis as a misconduct investigation expands. Freshfields, the firm conducting the governance review, is examining allegations that former boss John Neal engaged in an affair with communications director Rebekah Clement. The Council of Lloyd's has allowed Freshfields to pursue evidence that may implicate other employees. Sheila Cameron, CEO of the Lloyd's Market Association, stressed the need for transparency, saying: "This is so we can all learn lessons for both Lloyd's and our own organisations across the market in the future." The inquiry began in October amid speculation of policy breaches.
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DIVERSITY, EQUITY & INCLUSION

Scotland's councillors eye golden goodbyes

Scotland's local councillors are set to receive so called "golden goodbyes" in a bid to boost diversity in local government. Currently, councillors earn £26,000 annually but do not get severance payments when they are voted out or step down for other reasons. Cosla, the body that represents Scotland’s local authorities, believes that offering such payments could attract under-represented groups. However, critics warn the payments could cost councils £9.75m per election and strain already tight budgets. Cosla aims for implementation by the 2027 local elections. The Scottish government backs golden goodbyes in principle, but said introducing the policy would be a matter for local authorities.
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INTERNATIONAL

Australian study identifies work-from-home benefits

Research from the University of Melbourne indicates that working from home can enhance the mental health of Australians. The study, which analysed 20 years of data from the Household, Income and Labour Dynamics in Australia (HILDA) Survey, found that women benefitted most from a hybrid work model. Jan Kabatek, a co-author of the research, observed: "The biggest gains for women were found for work from home arrangements, which involved the majority of days spent at home, but retaining at least one or two days of work from the office or on-site . . . You are retaining the connection to the firm and to your colleagues, you can talk in person, and you are retaining those social ties, but you also have this work-from-home aspect that is strong enough to make a difference." The research found that although the mental health of Australian men was not significantly affected by working from home, their wellbeing was positively impacted by a reduction in daily commute times.

Starbucks Workers United rallies outside Empire State Building

Starbucks is facing continued strike action as Workers United’s open-ended walkout enters a third week, with no progress in contract talks and 55 locations still closed. The union is demanding better pay, hours, and resolution of hundreds of alleged labour violations. A  New York City rally outside the Empire State Building on Thursday led to 12 arrests. Demonstrators were joined by members of other unions, including the AFL-CIO and SEIU. “Their fight is a fight really for all of us, to workers across the country, to corporations like Starbucks, across the country that workers are fed up with the status quo, and they’re not going to take it anymore,” commented SEIU president April Verrett. Starbucks says 99% of stores remain open, and that it is investing $500m in workforce improvements.
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OTHER

Global billionaire population hits record 2,900 in 2025

The number of billionaires worldwide has risen to 2,900, collectively controlling $15.8tn in wealth, according to a new report from UBS. This marks an increase from 2,700 billionaires with $14tn in 2024, driven by tech sector valuations, rising share prices, and investment gains. UBS recorded 287 new billionaires, the second-highest annual increase since tracking began in 2015, split between entrepreneurs and heirs, including Colossal Biosciences founder Ben Lamm and 15 members of two German pharmaceutical dynasties. The rise reflects a broader generational transfer of wealth, with inheritance playing a growing role. The US remains the dominant region, though billionaire clients surveyed by UBS reported declining short-term investment appeal in North America (63%, down from 81%), with growing interest in Western Europe and Asia. 
 
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