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UK Edition
16th February 2026
 
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THE HOT STORY

The gender pay gap will take 30 years to close, report says

The Trades Union Congress (TUC) says efforts to close the gender pay gap will not be successful until 2056 if progress continues at the current rate. Currently, the gap stands at 12.8%, costing the average woman £2,548 annually. Women effectively work 47 days a year without pay compared to men. The TUC attributes the gap to part-time work due to caring responsibilities. Paul Nowak, TUC General Secretary, said: "Women have effectively been working for free for the first month and a half of the year compared to men." He added that the Employment Rights Act represents a crucial step towards achieving pay parity, as it will ban exploitative zero-hours contracts, which disproportionately affect women. The TUC has urged the government to enhance flexible working and childcare access to address this issue. Research released by the British Journal of Industrial Relations last year suggests that the gender pay gap may have been underestimated for more than 20 years: the Office for National Statistics had failed to properly account for the fact that it received more data from larger employers when it reported its annual survey of hours and earnings.
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HIRING

Bosses brace for hiring cuts

More than a third of employers plan to reduce hiring due to the Employment Rights Act, according to a Chartered Institute of Personnel and Development (CIPD) survey. About 37% of bosses expect to hire fewer permanent staff, citing increased hiring costs. The Act imposes new requirements, including immediate statutory sick pay and shorter unfair dismissal periods. Ben Willmott, head of public policy at CIPD, warned: "There is a real risk that the measures will act as a further handbrake on job creation." Unemployment could rise to 5.4% by 2026, with hiring intentions at their lowest since 2014. Analysis from KPMG suggests that while jobseekers in the UK are facing the toughest hiring conditions in years, the eurozone will benefit from "resilient labour markets and strong nominal wage growth."

Job seekers turn to reverse recruiting

Job seekers in the UK are increasingly turning to so-called reverse recruiting, paying up to £1,500 monthly to secure employment amid a hiring freeze. Job vacancies have dropped by 8.6% compared to last year, with only 11% of companies hiring, according to Manpower Group. James Gilford, founder of The Hidden Market, a London-based recruiter, says he has noted a surge in enquiries from British clients. Critics argue that these services exploit desperate job seekers because success is not guaranteed.

DfE pressed over its 6,500 new teachers pledge

Helen Hayes, chair of the Commons Education Select Committee, has requested that the Department for Education provides further detail on how it aims to achieve its manifesto pledge to recruit 6,500 new teachers. Writing to schools minister Georgia Gould, Hayes set out a series of areas in which the committee wants more information, including the long-term impact and sustainability of the 6,500 target, as well as the baseline being used to measure its achievement.

 
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LEGAL

Banking quango criticised over redundancy clauses

Open Banking Limited (OBL), a banking quango, is facing criticism for using controversial redundancy clauses that prevent former employees from pursuing legal claims. These clauses restrict individuals from filing grievances or accessing personal data after termination. A former employee is reportedly taking OBL to an employment tribunal over the redundancy process. OBL claims its settlement agreements comply with employment law. A spokesman said: "As part of our redundancy process, OBL may offer individuals a voluntary standard settlement agreement." This is not the first time OBL has been scrutinised, with a 2021 report highlighting a "toxic culture" within the organisation.
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TRAINING & DEVELOPMENT

Workers turn to trades

The Times highlights a growing trend of workers leaving white-collar jobs for trades - a shift driven by the rise of AI. Data shows that early careers job advertisements have fallen by almost a third since ChatGPT was launched in 2022, while around 40% of recent graduates are already "underemployed" in jobs that do not require a degree. Institute of Student Employers analysis shows that there are about 140 applications per graduate role. Chris Claydon, CEO of JTL Training, says he has observed a rise in people looking to retrain in a trade, adding: "Increasingly people are realising the value of a degree isn't equivalent to the cost of one."
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STRATEGY

BAT's AI plan could mean job cuts

British American Tobacco is launching a £600m AI-driven productivity programme, which may lead to job cuts. The initiative aims to automate functions using data analytics and AI tools, generating annual savings by 2028.
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REMUNERATION

Pay for NatWest boss surges to £6.6m

NatWest has handed chief executive Paul Thwaite a pay package worth £6.6m, representing a 33% increase from the £4.9m he took home in 2024. This rise puts his compensation in line with the payouts seen before the financial crisis, and makes him the highest-paid NatWest CEO since Fred Goodwin took home £7.7m in 2006. The increase stems from a new remuneration policy allowing bonuses of up to 150% of salary and a performance share plan capped at 300%.

Citigroup raises chief executive Jane Fraser’s pay to record $42m

Citigroup has increased Jane Fraser’s pay by nearly a quarter to $42m, in a vote of confidence for the British-born chief executive who is leading a high-stakes revamp of the Wall Street bank. Her compensation comprised a $1.5m base salary and a $40.5m bonus, in addition to a previously awarded $25m retention package vesting over five years. The pay rise follows a 66% surge in Citi’s share price during 2025 as the bank advanced an overhaul expected to eliminate 20,000 jobs and complete more than 80% of its transformation plan. Citi said the package reflects Fraser’s role in strengthening performance and positioning the bank for growth, with return on tangible common equity rising to 7.7%, though still short of its 10% target.
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INTERNATIONAL

Ford boosts bonuses to 130% amid quality gains

Ford Motor CEO Jim Farley announced a companywide bonus of 130% during a recent town hall, attributing the increase to improved vehicle quality metrics. The bonuses apply to Ford's global salaried workforce of about 75,000 employees and are based on annual performance metrics. Farley described the bonuses as an investment in workers. Despite recent challenges, including recalls and missed earnings expectations, Ford's stock has risen 47% over the past year.

Viral workplace pranks plague Japanese businesses

Psychologists warn that the pursuit of online fame is driving a surge in baito tero, or workplace pranks, among part-time employees in Japan. A report by Tokyo-based human resources provider Mynavi predicts that nearly 25% of Japanese companies will be affected this year. Incidents often surface on social media, with examples including employees engaging in reckless behaviour in kitchens. Takayuki Harada, a psychology professor, noted that young workers are seeking attention through these pranks, which can harm brand reputation. Companies are implementing measures including mobile phone bans to combat the trend.

Cambodia crafts online scam law

Cambodia is drafting a law aimed at online scams as pressure mounts to curb scam compounds operating in the country. Information Minister Neth Pheaktra said the law “will develop an important and clearer legal framework” for prevention and crackdowns, though provisions have not been disclosed. Cambodia has expanded enforcement, reporting at least 190 raids and more than 9,000 deportations since the start of the year, and citing the arrest and extradition of alleged kingpin Chen Zhi. Analysts warn syndicates adapt quickly. Officials said: “Cambodia is not a safe haven for online criminals.”
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OTHER

The long school summer holiday is 'ripe for a rethink'

In an editorial, The Times questions whether Britain’s traditional six-week summer school holiday still fits modern life. While its origins are debated, the structure has barely changed since the 19th century. The paper argues that long breaks now create childcare pressures for working parents and may worsen educational inequality, particularly for disadvantaged pupils. Research suggests shortening the summer holiday and redistributing time elsewhere in the year could help. The editorial concludes that tradition alone is not enough reason to keep the current system and calls for a national debate.
 
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