Human Times
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UK Edition
16th October 2026
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THE HOT STORY

Housing benefit rules undermining employment incentives

Councils spend £1.9bn annually housing approximately 200,000 vulnerable working-age people in supported accommodation, where high rents create substantial barriers to employment, according to The Times Welfare Inquiry. Only 4% of tenants work, with average monthly rents of £1,250 nationally and £1,650 in London, plus service charges reaching £200. Some residents face debt, eviction or pressure to abandon employment because working reduces their housing benefits. Harry, a former care leaver, was advised to quit his apprenticeship after accumulating rent arrears, subsequently facing benefit sanctions. Ella Spencer, a London hostel worker, explained: "The vast majority of them do want to work. But they are better off on benefits." New rules introduced on October 5 aim to improve employment incentives for around 325,000 people. However, calculations suggest minimum-wage workers may retain just £3.20 per additional hour worked, raising concerns about whether the reforms sufficiently address financial disincentives.
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CROSS-BORDER INDEX

Every country scored on how complex it is for employers to send staff abroad

For HR and global mobility teams, cross-border work does not start with booking a flight. It starts with a legal assessment, but tighter visa rules, changing compliance requirements and expanding reporting obligations make every business trip or assignment harder to get right.

The new WorkFlex Cross-Border Index removes the guesswork. Based on almost 2 million analysed travel days from more than 500 companies, it shows where compliance needs the most lead time before a project timeline or client commitment is set.

Check how your company's target markets score →

 
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WORKFORCE

New fund aims to tackle youth unemployment

The Work Foundation at Lancaster University has proposed a community jobs fund to create employment opportunities for more than 50,000 young people across 80 local authorities facing weak labour markets. The proposed roles would provide socially valuable work for up to 25 hours weekly, lasting 12 to 36 months and paying at least the national minimum wage. The initiative would complement the Government's Youth Guarantee programme, particularly in areas affected by long-term economic decline and limited employment opportunities. Ben Harrison, the Work Foundation's director, warned that "additional action is going to be needed to deliver lasting change in weaker local economies". Kash Sunghuttee, senior programme manager at Right to Succeed, highlighted the importance of personalised support, skills development and employer involvement. The report emphasises creating sustainable employment pathways for young people not in education, employment or training, while ensuring funded opportunities reflect local economic needs and continue beyond initial financial support.

UK struggles to retain working mothers

The UK faces a significant challenge in retaining professional women after maternity leave, with 34% quitting within six months of returning, according to new data from Deel. This rate is notably higher than in France and Sweden. The campaign group Pregnant Then Screwed highlighted that 73% of new mothers experience maternity-related discrimination at work. Rebecca Horne, head of campaigns, emphasised that maternity leave should be viewed as an investment in talent. Companies like Jaguar Land Rover demonstrate success with supportive policies, achieving a 97% return rate for new mothers.

Labour plans new pension scheme for social care workers

The UK Government has confirmed a new collective defined contribution (CDC) pension scheme for 1.5m care workers in England. This aims to address staffing shortages but raises concerns about potential income reductions in retirement. Katharine Photiou from Legal and General highlighted significant drawbacks, stating that CDC pensions are not guaranteed and can decrease. Laun Middleton from LCP warned against overpromising, noting that while CDC can provide lifelong income, it is not a guaranteed solution. The Department of Health and Social Care insists the scheme will be affordable and not funded by taxpayers.
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TRAINING & DEVELOPMENT

GMB calls for training first

Gary Smith, general secretary of the GMB union, has called for a ban on employers sponsoring overseas workers unless they demonstrate investment in training British workers first. He accused employers of relying on foreign recruitment instead of addressing domestic skills shortages, particularly in high-paying jobs related to the Royal Navy. Smith stated: "We are bringing in loads of agency labour from the Philippines, South Africa, Turkey, because we haven't trained welders in place." The government acknowledged concerns about job displacement and is collaborating with trade unions to ensure AI benefits workers.

Salesforce empowers students with free AI tools

Salesforce is providing free AI tools to six million students as UK graduate vacancies reach their lowest since 2020. The initiative aims to equip graduates with skills to meet employers' increasing demand for artificial intelligence expertise. The US tech company announced access to its workplace platform Slack and AI resources for universities and colleges. Zahra Bahrololoumi, Salesforce UK chief executive, said: "We're very clearly seeing businesses wanting to hire people that can work fluently with AI." This scheme is part of Salesforce's £4.53bn investment plan in the UK through to 2030.
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HIRING

Chancellor urged to cut hiring costs

Business leaders are urging the Chancellor to reduce hiring costs to support the Government's initiative to employ nearly a million jobless youths. The CBI has proposed raising the National Insurance contributions threshold from £5,000 to £6,000, which could create 41,000 jobs, primarily for young people. CBI chief executive Rain Newton-Smith said: "Adding further raised pressure to businesses already facing significant cost pressures would make that task harder." The Recruitment and Employment Confederation also called for urgent action to alleviate rising wage bills and taxes that deter employers from hiring.

Reform UK slams Big Four layoffs

Reform UK's Robert Jenrick has condemned Deloitte and KPMG for laying off British staff while hiring foreign workers. He stated that Deloitte laid off 800 UK employees but hired 8,800 foreign workers over five years. KPMG also faced scrutiny for sponsoring 1,100 visas while cutting 900 UK jobs. Both firms have made significant redundancies due to pandemic overhiring and economic challenges. Jenrick pointed to the need for large employers to prioritise British workers. He stated: "We want to see large employers take on more Britons and highly skilled workers." Deloitte and KPMG declined to comment.

AI misuse in job interviews revealed

Two-thirds of employers report students misusing AI in job interviews and assessments, according to the Institute of Student Employers (ISE). The survey found that 66% of employers detected AI use without disclosure or permission. While 62% accept AI for CV and cover letter assistance, students are warned against using it later in the hiring process. Stephen Isherwood, joint chief executive of ISE, said: "AI has become problematic for everyone in the hiring process." The ISE's 2026 employer survey noted a 4% increase in recruitment this year, following an 8% drop in 2025.
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REMOTE WORKING

UK bosses tackle office return resistance

Top executives in the UK face challenges with developing AI as resistance to returning to the office continues, City AM reports. According to KPMG's 2026 global CEO outlook, 21% of UK bosses said they see resistance from staff to coming back into the office. Jon Holt, group chief executive of KPMG UK, said: "Human judgement is fundamental to AI success, not just humans using AI, but being in the lead with this technology." KPMG's report also found 87% of British bosses are prioritising AI investment, expecting returns within three years. However, 81% acknowledge ethical concerns surrounding AI. Separately, although 86% of UK CEOs express confidence in their company's growth, broader economic optimism has declined from 79% to 64%.
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TAX

Gambling giants warn of job losses should taxes rise

Two major UK gambling companies, Entain and Rank, have warned that further tax increases could lead to venue closures and job losses. Entain's CEO, Stella David, urged the Government to reconsider any tax hikes, stating they threaten the viability of many shops and livelihoods. Recent speculation suggests a potential rise in machine games duty, which could generate £458m. Rank's CEO, Richard Harris, echoed concerns, stating that increased costs would harm venue viability and investor sentiment.

Labour’s £1bn office raid would be 'attack on growth'

John Healey's proposed £1bn tax increase on high-value office buildings has raised significant concern among property firms. The Chancellor's plan could disproportionately impact London's business districts, leading to reduced investment and job losses. Vanessa Hale, CEO of Real Estate UK, commented: "This isn't a good growth policy – it's an attack on growth policy." The proposal would affect around 9,000 properties, particularly in Canary Wharf and the Square Mile. BusinessLDN's John Dickie warned that such measures could undermine the UK's global competitiveness in attracting major businesses.
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CORPORATE

EasyJet pilots fear job cuts following takeover

EasyJet pilots are concerned about potential job losses following the airline's £5.7bn acquisition by US private equity firm Apollo. Employee bodies in the UK, France, Portugal, and Spain also refrained from endorsing the acquisition, citing job security worries. Meanwhile, city advisers will reportedly share £334.5m in fees from the buyout.
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LEGAL

Employers brace for new harassment laws

Employers are preparing for significant changes in harassment laws, effective October 30, due to the legacy of comedian Bernard Manning. In 1994, Manning's offensive jokes at a charity event led to a landmark case where employers were held liable for third-party sexual harassment. The Employment Rights Act 2025 mandates that companies must take "all reasonable steps" to prevent harassment, increasing their legal exposure. Eliza Nash from Constantine Law noted that these changes could enhance workplace environments. However, many companies may view compliance as a mere box-ticking exercise, raising concerns about genuine commitment to employee welfare.
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PRODUCTIVITY

FCA plans to embrace AI to automate financial regulation

The Financial Conduct Authority plans to become an agentic regulator, using AI to automate its supervision and enforcement work, according to Jessica Rusu, chief data, information and intelligence officer.
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INTERNATIONAL

BMW flies German specialists to Hungary

BMW is flying skilled employees from Germany to Hungary after transferring production there, using cross-border deployments to support its operations. The intervention follows investments worth billions of euros by Germany's automotive industry in Hungary over recent years. BMW adopted the staffing solution after the sector encountered problems in Hungary, exposing workforce constraints around relocated production. The arrangement means German expertise remains necessary at the Hungarian operation even as manufacturing moves away from Germany.

Kroger plans to eliminate 3,000 corporate roles

Kroger is to eliminate about 3,000 roles across various functions over the next three years, according to a memo, as the Cincinnati-based supermarket group  seeks to simplify operations and compete more effectively under new CEO Greg Foran. “Simplifying means making faster decisions and deploying more resources where they matter most,” Foran wrote in the memo to staff following a companywide call. Details about the job cuts, which ​would ⁠affect about 37% of the grocer's 8,200 corporate employees, would be shared in the coming months, he wrote.

Austrian judges and prosecutors go on strike

Austrian judges and prosecutors have gone on strike to protest staff shortages, demanding that the government address the issue despite ongoing budget constraints. The judiciary is facing increasing delays and backlogs, which are being exacerbated by a growing number of complex cases. Anna-Maria Wukovits, vice president of the Austrian Prosecutors' Association, said: "Prosecutors cannot go on like this. We are at our limit." Austria's national judges' association estimates that there ​is currently a shortage ⁠of more than 250 judges nationally. Wukowits told national broadcaster ORF that for prosecutors the figure is around 70.
 
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