Human Times

UK Edition

7th July 2025

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THE HOT STORY

Hiring confidence hits 13-year low

Hiring confidence among UK employers has reached its lowest point in 13 years, according to BDO’s Business Trends barometer. The report highlights that the rise in national insurance, which adds £20bn annually to employers' costs, has led to a "prolonged caution from UK business." Many firms are hesitant to recruit due to policy uncertainty and the prospect of further tax increases in the autumn budget. Scott Knight, head of growth at BDO, commented: "We're seeing early signs of recovery in business output," primarily driven by the services sector. "But as we all know, we can't rely on good weather forever." A separate survey by the CBI found optimism among financial services bosses has fallen sharply, with many signalling that they plan to cut headcount in the coming months.

The Times

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HIRING

AI threatens graduate job market

As artificial intelligence (AI) increasingly takes over entry-level tasks, recent graduates are facing a challenging job market. Connor Myers, a student at the University of Exeter, points out that major firms like Deloitte and EY have reduced their graduate recruitment by 18% and 11%, respectively. According to Adzuna, entry-level job opportunities in finance have plummeted by 50.8%, while IT services have seen a 54.8% decrease. Myers notes: "The last thing a person needs aged 21 is for an AI model to take the job they were told their degree was essential for." The shift raises questions about the value of degrees in fields like accountancy, as AI continues to reshape the employment landscape.

The Guardian

LEGAL

New law pressures firms to spy on 'inappropriate' conversations

Under the new Employment Rights Bill proposed by Deputy Prime Minister Angela Rayner, businesses will be compelled to hire diversity officers to protect employees from overheard conversations deemed offensive. Critics warn that this could lead to a 'chilling effect' on workplace culture, with Shadow Business Secretary Andrew Griffith saying: "Employers are already bleeding out because of Labour's war on business." The legislation allows employees to take their employers to tribunal for harassment by third parties, potentially increasing the number of employment tribunal claims, which rose by 45% in 2021. The Bill also facilitates greater unionisation, raising concerns about the return of burdensome regulations reminiscent of the 1970s. A government spokesperson argued that the Bill would not infringe on lawful free speech, saying: "Upsetting remarks do not fall within the definition of harassment."

The Mail on Sunday

Labour to ban replacing sacked staff with agency workers

Deputy Prime Minister Angela Rayner has announced significant amendments to the Employment Rights Bill aimed at preventing the exploitation of workers through fire and rehire tactics. In an op-ed for the Mirror, Rayner stated: "We promised to call time on scandals like P&O and with this amendment we are removing any doubt." The new legislation will prohibit companies from replacing dismissed employees with agency staff, ensuring that workers cannot be forced into worse conditions. The move follows the controversial sacking of 800 seafarers by P&O Ferries in March 2022. The Bill also aims to ban zero hours contracts and provide basic protections for all workers from their first day on the job. Over 15m people are expected to benefit from these changes.

Daily Mirror

WORKFORCE

Hospitality jobs slump following tax hikes

The UK hospitality sector has lost 69,000 jobs since the Chancellor increased national insurance contributions, marking the steepest peacetime job losses outside the pandemic. According to UKHospitality chief executive Kate Nicholls: "Unless there is a change of tack by the Government, we are looking at 150,000 to 200,000 fewer workers in hospitality." The rise in national insurance from 13.8% to 15% has led to widespread hiring freezes and reduced hours, with over half of UK businesses cutting staff to manage rising employment costs. The industry is calling for targeted relief to encourage hiring and reduce dependency on benefits.

City AM

Delivery drivers rage over wage cuts

Delivery drivers are expressing outrage as their wages have reportedly halved due to illegal workers entering the market. An investigation by the Express revealed that asylum seekers at a Home Office-funded hotel in London were making fast-food deliveries, prompting the Government to demand stricter scrutiny from firms like Just Eat and Deliveroo. However, illegal workers are reportedly circumventing security measures, Drivers like Lubomir Konakchiiski have seen their earnings drop significantly, with minimum delivery fees falling from £4.50 to £2.60. He remarked: "We are trying to do everything right, paying taxes, bills. But we are getting punished and the illegals are rewarded." The Home Office has pledged to tighten security measures, but many drivers remain sceptical about the effectiveness of these actions.

Daily Express

Consulting sector set for rebound

The UK consulting industry is projected to recover this year, following a stagnant 2024 with revenues remaining at £20.4bn. The Management Consultancies Association (MCA) anticipates a growth of 3.6% in 2025, driven by companies seeking to enhance efficiency and adopt AI, often resulting in job losses. Tamzen Isacsson, chief executive of the MCA, noted that clients are increasingly focused on "doing more with less" amid ongoing economic pressures. Although this growth is an improvement, it remains significantly slower than the 17% annual growth seen between 2021 and 2023. The MCA's analysis indicates that demand for consultants will be bolstered by cost-cutting initiatives and heightened cybersecurity needs, particularly following recent cyberattacks. "As long as you have change then there is demand for consultants," Isacsson stated, highlighting the sector's resilience.

The Times

EasyJet staff cash in on bags

EasyJet staff are reportedly receiving bonuses for identifying oversized cabin bags, as revealed in a leaked email from Swissport, which manages passenger gates at various UK airports. The email states that employees earn £1.20 for each oversized bag detected, part of the "easyJet gate bag revenue incentive" scheme. Dean Martin, a Swissport station manager at Glasgow Airport, noted that the initiative aims to "reward agents doing the right thing." Passengers have raised concerns about aggressive enforcement and inconsistent sizing, often facing charges even when their bags fit within official limits.

London Evening Standard

The Guardian

HEALTH & WELLBEING

Workers turn to drink for stress relief

According to a recent survey by Alcohol Change UK, 64% of 2,000 UK workers reported increased alcohol consumption due to work-related stress, anxiety, and pressure. The survey highlights that 40% of respondents drank more due to anxiety, while 38% cited work stress as a reason. Additionally, over a third reported drinking more because of deadlines and 29% due to job insecurity. The findings, released for Alcohol Awareness Week, indicate a strong demand for preventative measures and education regarding alcohol use in the workplace, with over 80% of workers believing employers should address this issue.

The Independent UK

DIVERSITY, EQUITY & INCLUSION

BA chief gets in on reverse mentoring

Sean Doyle, CEO of British Airways, has initiated a reverse mentoring scheme to gain insights from junior staff, aiming to address organisational issues. Launched in 2023, the programme pairs senior leaders with younger or diverse employees, expanding from 11 to 80 participants. The trend is gaining traction across various sectors, with firms like Estée Lauder and PwC implementing similar schemes. Roger Bull from Burges Salmon noted that reverse mentorship "flipped the traditional power dynamic," fostering candid conversations. The Sunday Times notes that law firms are particularly keen. Herbert Smith Freehills, Simmons & Simmons, Freshfields Bruckhaus Deringer, Baker McKenzie and Clifford Chance all run schemes.

The Sunday Times

CORPORATE GOVERNANCE

Nationwide faces backlash over Crosbie’s pay rise

Nationwide is facing criticism for not allowing its members a binding vote on a proposed 43% pay rise for chief executive Debbie Crosbie, which could elevate her total compensation to £7m. Campaigners argue this situation highlights a significant "loophole" in building society regulations, as members have fewer rights compared to shareholders of listed banks. While Nationwide claims to be exceeding requirements under the Building Societies Act by offering an "advisory" vote, critics like Luke Hildyard from the High Pay Centre stress that mutuals should operate with a more collective ethos. Despite the backlash, Nationwide maintains that its pay proposals have historically received strong member support.

The Guardian

Supersewer chief's pay soars

Andy Mitchell, chief executive of the Thames Tideway tunnel project, has received a £600,000 pay rise, bringing his total remuneration to £2.5m for the year ending March 2025. The increase comes as the project's total cost has escalated to £4.6bn, up from an initial estimate of £3.5bn, with a £100m rise reported this year. The Tideway project aims to modernise London's outdated sewage system, originally designed by Sir Joseph Bazalgette. A spokesperson stated: "The increase is largely due to the payment of a long-term retention incentive that has supported consistent leadership and the successful delivery of this vital infrastructure project." The project has faced delays, primarily due to the Covid pandemic, and has become a focal point for scrutiny regarding executive pay in the water industry.

The Guardian

Interview: Santander boss Ana Botín

The Sunday Times interviews Santander boss Ana Botín, who discusses her plans for TSB. She says the brand may survive and that the bank’s staff will be prioritised when it comes to realising efficiencies. Analysts at Jefferies suggest as many as 100 branches may have to go to meet financial targets.

The Sunday Times

SUSTAINABILITY

Government mulls net zero reporting requirements for firms

Michael Watson, Partner and Head of Climate and Sustainability Advisory at Pinsent Masons, explains that the UK Government is contemplating making the disclosure and implementation of transition plans a legal requirement for large firms. The Government is currently consulting on new Sustainability Reporting Standards (SRSs) and aims to ensure that significant entities, particularly pension funds, are included in any future requirements. While SMEs are not expected to be directly affected, they may still feel the impact through their supply chains. The Government is weighing options that could either require firms to disclose their transition plans or explain their absence.

The Scotsman

HEALTH & SAFETY

MPs ignore safety advice, staff at risk

Concerns regarding the safety of MPs' staff have escalated, with a recent survey revealing that over one in three employees now fear for their safety, a significant increase from 19% in 2022. A confidential report highlighted that some parliamentarians have "wilfully ignored" security advice, putting their staff in "extremely dangerous" situations. The Westminster-based wellness working group (WWG) expressed shock at the findings, stating that some MPs prioritise public optics over staff safety. Tom Fairweather from the WWG noted: "This is about a small number of MPs actively endangering their staff and acting far outside the realms of acceptability." The House of Commons acknowledged the need for improved safety measures and ongoing communication with the WWG to ensure staff can perform their duties safely.

The Guardian

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