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UK Edition
13th November 2026
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THE HOT STORY

Welfare overhaul to hit some young people with disabilities

One proposed change of Alan Milburn's welfare overhaul is to replace main sickness and disability benefits for adults under 25 with a youth allowance at standard universal credit rates. Milburn, a former health secretary, has said the current system of benefits must be entirely replaced for young people. "We need to tear up the old approach and start again for under-25s. A tweak to the benefits system just won’t do," he said. "We need a new system built around a young person with schools, the NHS and employers all working together to make sure that everyone has the chance to earn or learn." The UK's welfare bill is projected to rise from £333bn this year to £407bn by the end of the decade.
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EMPLOYEE BENEFITS

The Hidden Value in Existing Benefits Schemes

What do employee benefit choices tell us about today's workforce?


Every benefit selection tells a story. New analysis of more than 442,000 benefit selections across 8,386 UK organisations reveals how employees engage with workplace benefits and where employers may be overlooking opportunities. 

Nine in ten selections for two of the most popular salary sacrifice schemes came through relaunched schemes, a reminder that existing benefits still hold untapped value.

Even the most valuable benefits go unnoticed if they're hard to find, understand or access. Everyday discounts and salary sacrifice schemes show where that value is felt most.

The Employee Benefits Impact Report explores the trends behind these choices and what they mean for benefits engagement.

Download the report

 
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ECONOMY

AI spending fuels UK economic surge

Britain's economy expanded by 0.7% in the third quarter of 2026, marking the fastest growth since Labour took power. The Office for National Statistics (ONS) attributed the surge primarily to increased spending in the services sector, particularly in computer programming linked to artificial intelligence (AI). Despite rising energy prices due to the Iran war, household spending remained resilient, although concerns about inflation and interest rates persist. The figures were welcomed by Prime Minister Andy Burnham. “Despite a year where events around the world have pushed up costs here at home, our economy is growing, bringing hope for the future,” he said.
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TECHNOLOGY

Microsoft scrambles to fix global outage

Microsoft has been working to fix a global outage that has hit services including Teams, Outlook and its AI software Copilot. The tech giant reported on Friday morning that it has achieved the “partial recovery” of services in certain regions, but attempts to fix the outage are "not taking as expected.”  The company attributed the issues to “elevated load” on its infrastructure and said it was reviewing “additional actions” to “improve overall infrastructure stability.” The cause of the outage has not been confirmed, but Microsoft has ruled out a cyber attack. Australian Home Affairs and Cyber Security Minister Tony Burke said at a news conference: “They believe they are dealing in some ways similar to what we saw with respect to CrowdStrike where there is an update that has gone awry.”

Banks seek to curb cost of AI agents

Banks are looking to rein in the soaring cost of AI agents and are becoming more selective about where ​they deploy the technology. Spending on the tokens that power agentic AI could easily reach 20% of total labour costs, according to McKinsey's Global Banking ​Annual Review, which observed that responsibility for controlling such spending has shifted to new teams that some ​banks call AI FinOps. Banks have hitherto attempted to curb costs with ⁠systems that directed employees to different AI models based on the complexity of their ​queries. "But those models are ineffective when AI agents are working, because they communicate with each ​other and tokens quickly add up," said Vik Sohoni, a senior partner at McKinsey.
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STRATEGY

Aldi plans head office job cuts

Aldi plans to cut up to 150 head office jobs as part of a restructuring of its UK operations. The retailer is consulting with its technology team in Atherstone, Warwickshire. Earlier this year, Aldi made 103 redundancies in finance and administration. A spokesperson said: "We are . . . making some adjustments to the way parts of our UK business are structured." Aldi has over 1,000 shops in the UK and aims to expand to 1,500.
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LEGAL

Unfair dismissal rules set for overhaul

The Employment Rights Act 2025 will remove the cap on compensation for ordinary unfair dismissal claims starting January. Currently, the cap is set at £123,543 or 52 weeks' pay, whichever is lower. Writing in the Telegraph, Caroline Rayner, an employment partner at Knights, says an unintended consequence of the change may be an increase in senior executives being dismissed before the cap is lifted. She advises employees to carefully review settlement agreements and seek independent legal advice. She points to the importance of considering both financial and non-financial terms, as well as the tax implications of any settlement.

Calls to tighten NDA regulations grow

Bridget Phillipson, the Women and Equalities Minister, has said there is "scope to go further" in regulating non-disclosure agreements (NDAs) following allegations against David Walliams. Walliams faces accusations of exploiting his celebrity status for sexual purposes, which he denies. Phillipson remarked that injunctions are often misused by wealthy individuals to suppress allegations. The Ministry of Justice is exploring measures to ensure NDAs are not abused, amid growing public concern over their impact on women's rights.
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WORKPLACE

Boeing wants to stay 'close to the work' for safety information

Boeing's chief ​aerospace safety officer, Don Ruhmann, has said the planemaker must stay close to workers on the factory floor to keep the exchange ​of difficult safety information flowing as production ramps up. He told the International Aviation ​Safety Summit in Montreal that relying solely on dashboards and reports for ⁠safety information "is where you might get disconnected, because being at work and ​present on the floor is usually where the hard information surfaces first, and ​where people get to talk about it for the first time." He added: "As we're growing and scaling, staying close to the work, I think that's really important."
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HEALTH & WELLBEING

Not all obesity means ill-health, study suggests

A study suggests that people are being misdiagnosed as having obesity with the metric known as the body mass index (BMI), and that only between a quarter and a third of people currently diagnosed as such should be considered as in poor health. The study, which uses data from almost 850,000 adults from China, Britain, the US and Spain, comes in the wake of a proposal last year ‌from experts and medical organisations to move obesity diagnosis beyond just BMI, which is based on a person’s weight and height, to include body fat and broader health. Francesco Rubino, professor and chair of metabolic and bariatric surgery at King’s College ‌London, ⁠and the study’s senior author, said the inaccuracy of BMI measurements was well-known. "But we haven't so far got a better system," he said. The new proposed framework aims to "provide a meaningful clinical characterisation of obesity that can inform care and policy."
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INTERNATIONAL

Mercedes-Benz halts all further investments in Germany

Mercedes-Benz has said it is halting all further investment in Germany and warned that plant closures were now an option to tackle the high cost of car manufacturing in the country. "The executive board has jointly decided to halt all further investments in German sites," Mercedes board member Michael Schiebe said in a memo on the automaker's intranet. Board of management member Britta Seeger said in an interview: "We all want to avoid plant closures at all costs . . . Unfortunately, however, we must now pursue this option in more concrete terms."

Nvidia shares dive after CEO's exit

Nvidia's shares fell 16% following the resignation of chief executive Jensen Huang, erasing nearly $600bn (£460bn) from the company's market value. Huang's departure, after 33 years, was linked to revelations of extramarital affairs, one involving a suspected Chinese spy and two involving Nvidia employees. Nvidia's board has appointed Colette Kress as interim CEO and launched a search for a permanent replacement. Analyst Lindsey Stewart notes that Huang's exit highlights risks for founder-led tech firms, raising concerns about leadership succession and strategy oversight.

Qantas to cut 850 jobs in offshoring deal

Australian carrier Qantas is to cut 850 local jobs and ‌outsource some corporate functions to consulting firm Accenture as it adapts to increasing use of AI in the airline industry. The first phase of cuts will affect human resources, finance, procurement and marketing staff. ​Some roles that move to Accenture are to be undertaken by teams that would be "mostly" based in India. "Through a partner we can access the data and AI ​skills that every industry in the world is competing for, because we cannot hire at the pace this ​work needs," Qantas CEO Vanessa Hudson said.
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OTHER

Amazon secures approval for UK drone deliveries

Amazon has secured Civil Aviation Authority approval to expand its Prime Air drone delivery service in Darlington, potentially reaching 8,000 households. The company claims its Sail 4 safety authorisation is a world first, allowing drones to operate over urban areas and travel further. Prime members can receive eligible items weighing under 5lb within an hour without additional delivery charges. Amazon hopes to expand nationwide, although residents have raised concerns about privacy, damaged parcels and potential job losses from automation.
 
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