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UK Edition
16th January 2026
 
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THE HOT STORY

AI and robots reshape the workforce

Patrick Vallance, the UK science minister, stated that advancements in AI and robotics will significantly alter human jobs, particularly in warehouses and factories. He noted that robots will take over repetitive tasks, enhancing productivity. However, London Mayor Sadiq Khan warned that AI could lead to mass unemployment if not addressed. Vallance highlighted that robotics can improve job performance, citing surgical applications as an example. The government is expanding the Regulatory Innovation Office to support robotics and defence tech, with £52m allocated for new hubs to promote robotics adoption in businesses. Meanwhile, remote workers are facing increased unemployment risks due to the launch of Claude Cowork, a new AI app by Anthropic. This tool automates tasks like report writing and data entry, which were traditionally performed by white-collar workers.
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HEALTH & WELLBEING

Gen Z faces burnout crisis at work

Gen Z workers are experiencing high levels of stress, with 40% of those aged 18 to 24 taking time off due to burnout, according to a YouGov poll for Mental Health UK. In contrast, only about 10% of workers over 55 reported similar issues. Many young workers cite high workloads, unpaid overtime, and job security fears as significant stressors. Additionally, financial worries are prevalent, with two-thirds of Gen Z feeling stressed about money. Brian Dow, the chief executive of Mental Health UK, said: "This group is facing pressures both inside and outside work, alongside an uncertain job market where AI is increasingly seen as a threat to some entry-level roles. "For many, the social contract that rewarded previous generations for hard work is breaking down."
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WORKFORCE

Disability confident scheme faces backlash

The UK government's Disability Confident scheme, aimed at increasing employment for disabled individuals, has been criticised for insufficient reforms. Despite new measures to limit indefinite membership at Level 1, campaigners argue that employers can still self-certify without hiring disabled staff. Sir Stephen Timms, Social Security and Disability Minister, acknowledged the scheme's potential but admitted it has not provided adequate support. Critics, including James Taylor from Scope, claim the reforms lack ambition and accountability. Jane Constance, a disability advocate, described the scheme as merely a badge that does not guarantee employment for disabled people.

Working parents face rising pressures

Working parents and carers are facing significant economic pressures and rising demands, according to the Modern Families Index 2026 by Bright Horizons Work+Family. The survey of 3,000 UK parents highlights that nearly half of working mothers feel their caring responsibilities negatively impact their careers. Chris Locke, executive director at Bright Horizons, said: "Care pressure is no longer a personal issue... it is becoming a structural challenge for employers." The report calls for organisations to enhance support for employees, noting that £51 bn is lost annually due to presenteeism and absenteeism linked to caregiving issues.

Asda faces job cuts amid market decline

Asda has put more than 150 jobs at risk as it seeks to cut costs following a weak Christmas performance that saw sales fall 4.2% and market share drop to a record low of 11.4%. The retailer plans to reduce management and warehouse roles, including logistics staff in Yorkshire, as part of wider efficiency measures led by chairman Allan Leighton. Pressure has mounted as rivals Tesco and Sainsbury's gained customers over the festive period.
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TAX

Tax relief for remote workers axed

From April 2026, millions of remote workers in the UK will lose the ability to claim tax relief for additional household costs, such as energy and broadband. Currently, HMRC allows a flat rate of £6 per week for those whose employers do not provide an office. Chancellor Rachel Reeves announced the change in the Budget, noting that tax relief will be eliminated for all workers. However, employers can still assist with home working costs without tax implications.
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HIRING

Recruiter sees fees fall 14%

Global recruitment firm Robert Walters reported a 14% decline in fees for the closing three months of 2025. Despite this, the UK market, which accounts for 17% of its fees, saw growth of 25%, driven by a 20% increase in London hiring and a 40% rise in regional fees. Chief executive Toby Fowlston said: "In specialist recruitment, we have stronger conviction that recovery is increasingly well-entrenched in the UK." The firm anticipates net fee income in 2026 to be slightly below last year due to ongoing hiring market uncertainties.
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LEGAL

Aid workers acquitted after long trial

In a landmark ruling, a Greek court acquitted 24 aid workers, including Sara Mardini and Sean Binder, of charges related to rescuing migrants on Lesbos. The volunteers, who worked for the Emergency Response Centre International (ERCI) from 2015 to 2018, faced accusations of human trafficking and other offences. Presiding judge Vassilis Papathanassiou stated: "All defendants are acquitted of the charges" as their actions were aimed at providing humanitarian aid. Prosecutor Dimitris Smyrnis noted that "no independent basis establishing the criminal liability of the defendants has been demonstrated." Amnesty International welcomed the decision, urging protection for humanitarian efforts.

SFO director steps down

Nick Ephgrave has resigned as director of the Serious Fraud Office (SFO) halfway through his five-year term, citing personal reasons. His departure is seen as a significant setback for the agency, which has around 35 ongoing investigations. It is noted that Mr Ephgrave oversaw the establishment of the first international anticorruption prosecutorial taskforce at the SFO, while investigation times were reduced during his tenure. Since his appointment in 2023, the SFO has opened 12 new investigations, including a probe centred on complex fraud offences linked to the collapse of Axiom Ince.

NHS chief awarded £1.4m over bullying

Dr Susan Gilby, former chief executive of Countess of Chester Hospital, has been awarded £1.4m in damages after an employment tribunal found she was bullied out of her position after raising concerns about its chairman. Dr Gilby claimed she was "harassed, intimidated and undermined" by Ian Haythornthwaite, the hospital's chairman. She also accused him of prioritising finances over patient safety. Dr Gilby said that when she "blew the whistle" about Mr Haythornthwaite's "aggressive" behaviour, she was suspended and soon afterwards resigned from her post. The tribunal ruled in her favour, having found that Mr Haythornthwaite and other board members had devised a plan to oust her.
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WORKPLACE

Promotion isn't always the answer

Many employees aspire to promotions, but a new Gallup study reveals that not all are suited for leadership roles. Only 30% of surveyed managers had supervisory experience, with many promoted based on past performance. Dr George Sik, a consultant psychologist, noted that those lacking management skills often feel disengaged, leading to a "lose-lose scenario." He emphasised the importance of understanding broader company goals and suggested that employees should seek feedback to prepare for promotion. Structural issues and proximity bias may also hinder career progression, especially in hybrid work environments.
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INTERNATIONAL

Denmark's seniors embrace longer working lives

Denmark is witnessing a significant rise in the number of seniors working beyond retirement age, now exceeding 100,000. This trend is attributed to tax breaks, flexible working options, and supportive government policies. Employment Minister Kaare Dybvad Bek noted that changes in pension rules have made it "more economically attractive" for seniors to remain in the workforce. Jesper Rangvid, a finance professor, highlighted the appeal of tax-free bonuses for older workers. Despite the benefits, the government acknowledges that not all seniors can continue working until the state pension age of 70.

Indonesia's ride-hailing industry faces major reform

A draft presidential decree in Indonesia proposes significant increases in financial and social benefits for ride-hailing drivers, reducing platform commission caps from 20% to 10%. While the move aims to improve driver welfare amid recent protests, industry insiders expressed concerns that the added insurance costs could threaten the profitability of ride-hailing services. The decree, which is also likely to impact on-demand logistics firms, reflects the growing political influence of drivers demanding better pay and working conditions.
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AND FINALLY....

Secrets of a century-long career

Walter Orthmann, who worked for 84 years at the RenauxView company, shared his secrets to longevity in the workplace. He emphasised the importance of "staying curious, learning constantly, and really doing what you love." Walter advised maintaining a healthy lifestyle and managing stress, stating: "Don't get nervous, do everything laughing." His colleagues viewed him as a mentor, appreciating his kindness and leadership. Born in Brazil in 1922, Walter began working at 15 to support his family and adapted through various roles until his retirement at 102 in August 2024, never intending to stop working.
 
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