Human Times

UK Edition

24th October 2025

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THE HOT STORY

Tax raid threatens Magic Circle firms

Partners at London's prestigious law firms may face a £250m tax increase under proposed plans by Rachel Reeves. A new 15% tax on profits from limited liability partnerships (LLPs) could raise their total tax bill from £1.78bn to £2.04bn. Colin Passmore, chairman of the City of London Law Society, warned that this change could harm London's competitiveness as a legal hub. David McNeill, director of public affairs at The Law Society, stated that the tax could significantly impact the legal profession, potentially leading to job losses and "legal deserts" in rural areas. Analysis by UHY Hacker Young shows that applying a 15% employer's NICs rate would create an additional tax liability of around £46,000 per partner each year.

The Daily Telegraph

City A.M.

BENEFITS & HR BENCHMARKING

Benchmark your benefits against industry leaders

From cost challenges and wellbeing pressures to evolving employee expectations, HR and Reward leaders are facing more complexity than ever. This puts your benefits strategy under the spotlight. Every decision counts. That’s why Gallagher’s UK Benefits Strategy & Benchmarking Survey is back.

It’s your chance to see where the market is heading and find out how your strategy compares to 300+ leading organisations like Kraft Heinz, TalkTalk, Santander, ClearBank, and Next PLC who contributed last year. By completing the survey, you’ll get exclusive early access to our 2026 Workforce Trends Report and discover emerging trends in pay transparency, flexible benefits, and new working models.

Complete the survey.

REMUNERATION

UK gender pay gap shrinks

The UK's gender pay gap has decreased by over 25% in the last decade, according to the Office for National Statistics. As of April, the gap in full-time employment stands at 6.9%. Additionally, the proportion of workers in low-paid jobs has reached a record low of 2.5%. The report highlights significant progress in reducing wage disparities. A spokesperson from the Office for National Statistics stated: "These figures reflect a positive trend in the labour market."

The I

Average full-time City salaries surge

The abolition of the banker bonus cap in October 2023 has led to significant pay increases in the City of London. Average full-time salaries have surpassed £100,000 for the first time, reaching £103,352, a 10.6% rise from the previous year. The Office for National Statistics (ONS) reported that average pay for all employees, including part-time workers, rose to £99,911. The surge is attributed to increased bonuses for bankers, lawyers, and tech professionals. However, median full-time pay remains lower at £68,663.

London Evening Standard

Tax rise hits hospitality and retail pay

Retail and hospitality wages rose more slowly than in other sectors in 2025, ONS figures show, with employers cutting hours and headcount to manage increased payroll taxes and minimum wage hikes.

Financial Times

WORKFORCE

Labour moves to empower unions

The Labour Government is considering a proposal to grant trade unions weekly access to workplaces, with fines of up to £75,000 for employers who deny entry. The Employment Rights Bill (ERB) aims to establish this "right of access," which currently does not exist. Employers may need to respond to access requests within five working days. Andrew Griffith, shadow business secretary, criticised the plan, claiming it would empower union leaders to pressure workers. He said: "Businesses will become playgrounds for activists rather than engines for growth." A decision on the proposal could come before Christmas.

City A.M.

Starmer's digital ID plan sparks debate

Sir Keir Starmer announced that a digital identity card will be mandatory for anyone wishing to work in the UK. He stated: "If you want to work, you've got to have it." While the card will be compulsory for employment, Starmer emphasised that it would remain voluntary for other purposes, such as renting or buying a house. The proposal has faced backlash, with nearly 3m signatures on a petition against it. Critics argue that mandatory IDs could harm privacy and push migrants into precarious situations. Starmer noted that many customers he spoke to at Barclays bank were enthusiastic about the idea.

The I

Scotland's oil jobs at risk

The House of Commons Scottish Affairs Committee has warned that the UK Government must not hasten the decline of Scotland's oil and gas industry. The report highlights that clean energy jobs are not being created quickly enough to offset losses in the North Sea. The report calls for urgent action to address job losses, particularly following the closure of Grangemouth, Scotland's last oil refinery, which has caused significant community trauma.

Express.co.uk

The I

Young claimants face Universal Credit cuts

Proposed changes to Universal Credit may bar individuals under 22 from claiming the health element, known as the Limited Capability for Work and Work-related Activities element. Currently, around 66,000 young people aged 18 to 22 receive these payments. Labour MP Dr Scott Arthur questioned the rationale behind this proposal, while Sir Stephen Timms, Minister of State for the Department for Work and Pensions, stated that the aim is to encourage youth employment by removing potential disincentives. The Universal Credit Bill will also reduce the health element for new claimants starting next April.

Express.co.uk

Mirror.co.uk

Young jobseekers overlook food sector

The food and drink sector, a vital part of the UK economy, faces a challenge in attracting young jobseekers. Research from the Institute of Grocery Distribution (IGD) reveals that 20% of young people are unaware of opportunities in this industry, with 72% not considering it for their careers. Sarah McCarthy, head of employability programmes at IGD, highlighted a "guidance gap," as many young individuals are directed towards traditional careers. The sector, worth £358bn, needs to raise awareness of diverse roles, especially in technology and engineering, to meet future workforce demands.

The Times

HIRING

Fears new protections may deter hiring women

The Government has acknowledged that proposed changes to workers' rights, particularly for pregnant women, may deter companies from hiring women. The Employment Rights Bill aims to strengthen protections for pregnant employees, making it harder to dismiss them. However, officials warned that this could lead employers to avoid hiring women of childbearing age due to perceived legal and practical challenges. James Townsend, an employment lawyer, noted that if protections become too burdensome, firms might quietly withdraw from hiring certain women. The bill also seeks to ban zero-hours contracts and empower trade unions.

The Daily Telegraph

LinkedIn makes £500bn AI productivity claim

UK businesses could potentially unlock £532bn in productivity through AI-assisted recruitment, according to LinkedIn's latest report. AI tools, like LinkedIn's hiring assistant, can relieve recruiters from administrative tasks, enabling them to focus on strategic decisions. However, a survey by Zinc revealed that 73% of recruiters use AI, yet 71% believe it reduces personalisation. Charlotte Hall, co-founder of Zinc, commented: "AI is supposed to make hiring smarter, not colder." Additionally, 80% of AI job postings are in London, highlighting a regional skills gap.

City AM

The Times

CORPORATE GOVERNANCE

CQC chief quits amid maternity inquiry

Sir Julian Hartley has resigned as chief executive of the Care Quality Commission (CQC) due to an independent inquiry into maternity failings at Leeds Teaching Hospitals NHS Trust, where he served for a decade. He stated that remaining in his role was “incompatible” with the investigation, which could undermine public trust in the regulator. Hartley expressed regret for the harm suffered by families during his tenure. The CQC's chair, Sir Mike Richards, acknowledged Hartley's departure as a significant loss and commended his decision to prioritise the integrity of the regulator. Dr Arun Chopra will serve as interim chief executive.

The Guardian

Jane Fraser becomes Citigroup chair

Jane Fraser, the British-born CEO of Citigroup, has been appointed chair of the bank's board of directors, receiving a one-off bonus of $25m (£18.7m) as part of the bank's overhaul. Citi stated that the bonus reflects the board's confidence in Fraser's strategic direction. Fraser, who became CEO in 2021, has overseen significant restructuring, including job cuts and improved performance metrics.

Mitchells & Butlers appoints new finance chief

Mitchells & Butlers has appointed Emma Harris as its new finance director, succeeding Tim Jones after his long tenure. Harris previously served as finance director at Marks and Spencer's food business. The company confirmed that Jones will remain until the handover, expected early next summer. Despite a slight decline in sales in London and premium venues, Mitchells & Butlers reported a 3.1% increase in like-for-like sales in its final quarter. The company's shares rose by 1% to close at 255p.

The Times

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