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UK Edition
6th February 2026
 
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THE HOT STORY

Pension sacrifice changes spark concern

From April 2029, salary-sacrificed pension contributions exceeding £2,000 will incur national insurance contributions, raising concerns for workers. Sir Steve Webb, a former pensions minister, noted that even those sacrificing less than £2,000 might face losses due to potential changes in pay structures. The Office for Budget Responsibility (OBR) indicated that employers could adjust salary sacrifice arrangements, impacting many employees. Webb said: "We could see millions of people on modest incomes losing out," urging the Government to clarify the potential losses from this policy.
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WORKFORCE

Disabled applicants face long waits for support

Disabled individuals are facing average waits of over 100 days for support applications, according to a new report from the National Audit Office (NAO). The report highlights significant delays in the Access to Work scheme, which has seen applications more than double from 76,100 in 2018/19 to an expected 157,000 by 2024/25. Gareth Davies, head of the NAO, said: "The Access to Work scheme plays a valuable role in helping people with disabilities secure and sustain employment." The Department for Work and Pensions is struggling to manage the increasing demand and backlog.

ArcelorMittal denies job losses in Europe-wide review

ArcelorMittal has responded to media reports suggesting that over a third of its Luxembourg workforce could face job losses due to a Europe-wide review of support functions. The company clarified that these figures represent a study, not actual layoffs. "It is absolutely not the case that thousands of jobs in Europe will be transferred," a statement from the company said. The review, affecting around 1,150 positions, aims to assess roles for potential transfer to Poland or India, but many jobs will remain in Luxembourg.

Wedgwood faces job cuts as demand slumps

Ceramics firm Wedgwood is set to reduce the size of its workforce, with the exact number of affected employees yet to be confirmed. Owner Fiskars Group said it must align production with demand and costs. The GMB union described the decision as "another body blow" for the ceramics industry and has urged the Government to support the sector.  It added that it will be "fighting to mitigate any compulsory job losses." Wedgwood says it will be commencing a standard 30-day consultation.

Strikes threaten iconic sporting events

WSP Textiles, a historic UK firm known for producing sporting cloth, faces strikes due to a pay dispute. Over 50 workers are striking from February 2-7 and 11-13, demanding better wages amid rising living costs. The Unite union claims workers have not received an above-inflation pay rise in years, while WSP reported a £1.4m profit in 2024.
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TRAINING & DEVELOPMENT

Degree apprenticeship demand surges

Interest in degree apprenticeships is surging as students seek stable career paths amid a decline in graduate job opportunities. According to education platform Higherin, searches for apprenticeships have doubled in the past year, with a 78% increase already recorded in 2026. Oliver Sidwell, founder of Higherin, said: "The conversation has moved from 'you can do this if university isn’t for you' to 'this is a serious route with real career prospects'." Institute of Student Employers data shows that graduate roles fell by 8% last year while apprentice hires increased at the same rate. The institute predicts a further graduate vacancy drop of 7% this year, with apprentices set to increase by 1%.
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LEGAL

London's illegal worker raids surge

In 2025, immigration officers conducted 2,715 visits to businesses in London, marking an increase of over 700 from the previous year. These raids led to 2,172 arrests, according to Home Office data. Across the UK, there were 12,791 raids, resulting in 8,971 arrests. The hospitality sector, particularly restaurants and cafes, faced the highest number of illegal worker arrests.
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FLEXIBLE WORKING

Flexible working: the hidden costs

Flexible working offers significant advantages for employees, but it also incurs hidden costs for both businesses and workers, according to Professor Len Shackleton from the Institute of Economic Affairs. The government's new Employment Rights Act strengthens the right to request flexible working, making it challenging for organisations to refuse such requests. Shackleton noted: "Policymakers are often tempted to use employment mandates to pursue social objectives," which can lead to unintended consequences. He emphasised that evaluations of working arrangements should be conducted by employers and employees who understand their specific circumstances.
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HIRING

DfE is ‘particularly keen’ to recruit male teachers

The Department for Education’s early education minister Olivia Bailey has said the department wants to see male teachers “stay and thrive” in schools and early education settings. Speaking at a Westminster Hall event on educational outcomes for disadvantaged boys and young men, Bailey emphasised the importance of male teachers as “role models.” Bailey said: “As part of our drive to recruit 6,500 expert teachers, we’re particularly keen to see more male teachers teaching, guiding and leading the boys in their classrooms . . . We want the profession to attract excellent male teachers who stay and thrive. And of course, this is just as important in the early years, too.”

 
Tes
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CORPORATE GOVERNANCE

TSB boss to become Sabadell chief

Marc Armengol, the chief executive of TSB, will leave the bank to become CEO of its Spanish parent company, Sabadell, replacing César González-Bueno. The move coincides with TSB's impending acquisition by Santander in a £2.9bn deal which is expected to close in the first half of the year, pending regulatory approval. TSB plans to announce Mr Armengol's successor closer to his departure date in May.
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CORPORATE

Vodafone vows no retail job cuts

Vodafone's chief executive has said there will be no forced redundancies for retail staff following the £16.5bn merger with Three. "Our presence in the high street is really key to our business model," said Margherita Della Valle. The merger is expected to result in £700m in cost savings or extra sales, with integration progressing ahead of schedule.

Quiz enters administration again

Fashion retailer Quiz has entered administration for the third time in six years, resulting in 109 job losses in Scotland. While its 40 stores and seven concessions remain operational, they are holding clearance sales and not accepting refunds. The company struggled with disappointing sales during the Christmas period and Alistair McAlinden, joint administrator at Interpath, noted that it has been "a tough start to 2026" for high street retailers.
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CONDUCT

Paul Weiss chair resigns over Epstein links

Brad Karp has resigned as chairman of multinational law firm Paul Weiss following revelations over his connections to the late Jeffrey Epstein, a convicted sex offender. Mr Karp expressed regret over seeking Mr Epstein's help in securing his son a job. Documents including email exchanges seemingly show Mr Karp discussing Mr Epstein's pre-existing plea deal on sex trafficking charges. 
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TECHNOLOGY

Finance leaders embrace AI

Finance teams are rapidly adopting artificial intelligence, but most are still struggling to demonstrate clear returns on their investments, according to Deloitte’s Finance Trends 2026 survey. While 63% of finance leaders say AI is fully deployed in their functions, only 21% report clear, measurable value so far, and just 14% have fully integrated AI agents into day-to-day finance operations. The gap reflects challenges moving beyond pilots, with legacy systems, unclear ROI, and data complexity slowing progress. Data privacy is also a major concern, especially given the sensitivity of financial information. Despite these hurdles, confidence remains high: nearly nine in 10 chief financial officers expect AI to be critical to finance operations.

Anthropic's Claude Opus shakes markets

Anthropic's recent release of the Claude Opus 4.6 model has significantly impacted the stock market, particularly among legal firms. Shares of Thomson Reuters dropped nearly 16%, while RELX fell 12%. Analysts suggest that the market is reacting to the potential of AI tools in various sectors, with James Sym from Goodhart stating: "The market's in seek and destroy mode." Despite Anthropic's relatively low public profile, the new model aims to assist knowledge workers with tasks in applications like Excel and PowerPoint, enhancing productivity.

Council turns to AI to help streamline workforce

Bury Council is looking at rolling out AI tools to "automate mundane administrative tasks" as part of a £3m strategic workforce review aimed at reducing reliance on agency staff, removing the need for currently vacant managerial positions, and helping tackle a £16m budget gap.
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AND FINALLY....

From Kiss Cam to crisis comms

Kristin Cabot, the HR executive caught on a Kiss Cam during a Coldplay concert, is charging $875 for her upcoming speech titled "taking back the narrative." The incident, which occurred in April 2025, led to widespread speculation about her relationship with her married boss, Andy Byron. Cabot described the experience as public shaming, stating she felt branded with a "scarlet letter." Her speech, scheduled for April 16 at PRWeek's 2026 Crisis Comms Conference, aims to share her strategies for reclaiming her narrative, alongside PR expert Dini von Mueffling.
 
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