Many beloved high street stores have come and gone in recent years, with many falling into administration since the COVID-19 pandemic.

Administration is never where a business wants to be, but when a company becomes insolvent, employees are at risk of redundancies, suppliers and creditors may not be fully repaid or the company could face total liquidation.

While not every business has survived this turmoil, others have been lucky enough to keep running thanks to new investments, a successful restructuring or a change in ownership.

According to the Retail Gazette, 38 major retailers went into administration last year. While it didn’t reach a record high amount – such as with the 2008-2009 recession – it was still a significant number, serving as a stark reminder of the challenges businesses have faced since the pandemic, coupled with the cost of living crisis that has affected consumer spending and increased operational costs.

Fortunately, these companies have had a happier ending than others and have managed to turn things around and avoid complete closure. So where did they go right – after going wrong?

1. HMV

HMV (short for His Master’s Voice) has faced administration twice, both in 2013 and 2018. During its first round, all 4,350 of its UK staff were at risk of redundancies. Restructuring firm Hilco UK later acquired the company, taking it out of administration and saving 25 shops from closure and 2,500 jobs.

But just five years later, HMV fell into administration yet again, with Hilco UK citing a “tsunami” of competition as the reason. Canadian record shop Sunrise Records announced it had bought the company for an undisclosed amount in 2019. 

Since then, HMV hasn’t fallen into administration again and has managed to bounce back, including the reopening of its flagship store in Oxford Street. The company has found success by capitalising on the resurgence of vinyl, which has become a major part of its business. It also embraced the growing demand for pop culture merchandise and with a strong online presence, such as TikTok, it’s been able to attract a diverse audience through its social media marketing.

2. The Body Shop

Another tale of post-pandemic strife, The Body Shop went into administration in February 2024, putting over 2,000 jobs at risk and closing 85 of its stores permanently.

The ethical beauty brand faced many financial difficulties, including declining sales in 2023, resulting in decreased revenue of 13.3% in the third quarter. Moreover, after being acquired by German private equity firm Aurelius, the company struggled with its financial obligations, including rent, supplier payments and high operating costs. 

However, The Body Shop was rescued from administration in September 2024 by specialist investment firm Aurea Group. Charles Denton, the CEO of the company, told staff that The Body Shop was “back for good” and reported a £2 million profit in sales in the first three months under its new ownership. That being said, a source close to the company warned about reading too much into the results, commenting that while they may be positive at first glance, the business now has a smaller operation and many of its sales could’ve been supported by discounts and stock clearance.

3. Typhoo Tea

Once a staple of British teacups, Typhoo fell into administration in November 2024 after facing declining sales, deepening losses and increasing debts. In the twelve months up to September of the same year, it generated unaudited revenue of around £20 million, with a loss of £4.6 million before tax.

First established all the way back in 1903, Typhoo was the first pre-packaged tea brand in the UK, quickly becoming a household name for generations of tea drinkers. However, with stiff competition from the likes of PG Tips and Twinings, as well as changing consumer preferences and the rise of premium tea brands, Typhoo struggled to maintain its market share.

Fortunately, Typhoo’s administration woes only lasted for a month, as the company was bought out by vape manufacturer Supreme for £10 million. 

Sandy Chadha, chief executive of Supreme, commented: “I believe Typhoo Tea will thrive under our ownership, further benefiting from Supreme’s significant market reach and successful track record in creating brand loyalty, making us an ideal fit for the business.”

4. Carpetright

Carpetright has faced a colossal amount of trouble over the last few years and 2024 seemed to really pull the rug out from under the company’s feet. Having been hit by a serious cyber attack – resulting in not being able to trade online or in-store for over a week – Carpetright entered administration in July 2024, closing all 273 of its stores.

According to The Guardian, the company collapsed with debts of almost £345 million. This included carpet suppliers Condor and Betap, UK tax authorities and even its own employees.

But in a strange twist of fate, Tapi Carpets – one of Carpetright’s major competitors – bought out the chain at the end of the month. As part of its rescue deal, Tapi acquired 54 Carpetright stores, along with 300 jobs. However, 1,893 of its employees who weren’t included in the deal were reported to be made redundant.

5. Homebase

Homebase, one of the UK’s most popular DIY retailers, entered administration in November 2024, mainly due to a combination of financial struggles and poor strategic decisions.

Homebase was acquired by Australian retail group Bunnings in 2018, which set out to revamp the company, including changing its business strategy. Bunnings attempted to rebrand Homebase and introduce its own operating model, but this move wasn’t well-received by most customers, and was dubbed as the “most disastrous retail acquisition ever”. What’s more, its sales were also affected following the pandemic, reporting a £84.2 million loss in the year to January 2023.

But while the company reduced losses by 70% since that time, it fell into administration in November 2024. Fortunately, it wasn’t long before it was sold to retail group CDS, acquiring 70 Homebase stores with plans to rebrand them to The Range. However, non-CDS-acquired stores are set to close at the end of February.

Despite the ups and downs, these businesses have shown that going into administration doesn’t always mean the end of the road. While some have had to downsize or change ownership, they’ve managed to stay afloat. Of course, not every company is as lucky, but for now, these brands are still standing – just in a slightly different way than before.

The workforce is always evolving, and with that, HR teams are facing a lot of challenges. From finding and retaining talent and keeping up with emerging technologies to managing low employee engagement, it’s tough for businesses to stay ahead.

Luckily, several innovative startups are stepping up to the plate, introducing both new employee benefits and support for people teams. 

Handpicked from this year’s Startups 100 for 2025 Index, we’ll be spotlighting some of these game-changers. These startups are leading the charge in improving the employee experience and simplifying processes with their tech-enabled solutions.

Whether it’s simplifying the volunteer experience, making AI more accessible or helping parents navigate parental leave, these spectacular startups are all about making life a little easier for everyone. 

Through their innovation, impressive backing and growing recognition, it’s clear that these businesses aren’t just solving problems – they’re shaping the future of work, care and community. With their continued growth, they’ll undoubtedly keep making a positive difference in the way we live and work.

And don’t forget, there are many other innovative startups that are taking strides in various industries. If you’re inspired by these game-changers, check out the 2025 Startups 100 Index for even more rising stars.

With more mass layoffs hitting the tech industry in 2025, seeing yet another headline pop up around workplace redundancies isn’t much of a surprise anymore.

But Meta’s latest round of layoffs are a little different this time. The tech giant, which recently announced it would be cutting 5% of its workforce, said that it would be terminating low-performing staff as part of its “Year of Efficiency” strategy. 

However, affected employees have slammed the company for this decision, with claims that its performance management system had downgraded their rankings, despite having a good performance history.

With news around the removal of its Diversity, Equity and Inclusion (DEI) programme, ending fact-checking and founder Mark Zuckerberg donating $1 million to the Trump fund, the company’s latest wave of layoffs seems to be a testament to its more recent cut-throat, dog-eat-dog culture.

Meta terminates “low-performing” employees

As part of the company’s new strategy, Zuckerberg announced in a staff memo that he would “move out low performers faster”, while also increasing the use of Meta’s performance management system.

As a result, around 3,600 of its global workforce will be cut, although it has plans to hire new people to fill these positions later this year.

“We typically manage out people who aren’t meeting expectations over the course of a year,” Zuckerberg said. “But we’re now going to do more extensive performance-based cuts during this cycle.”

Fellow tech giant Microsoft also cut a small percentage of its staff earlier this year for the same reason. Salesforce also laid off 1,000 employees to cut out low-performers and restructure the business to focus on its AI initiative, Agentforce.

High-performing workers express frustration over layoffs

Terminated employees have been quick to challenge Meta over its decision, particularly from staff who say that they performed up to a good standard. 

According to Business Insider, eight employees who were laid off said they received “At or Above Expectations” ratings last year – the middle tier in the company’s three-level performance review system. They also discovered that their ratings had decreased to “Meets Most”, one of the lowest tiers of the system. 

One affected employee commented: “When I received the email I was surprised by it mostly because I have a very solid performance history and no indicators of the last six months of performance problems.”

Meanwhile, another employee posted documents on Meta’s internal communications platform, showing that they had consistently met or exceeded their targets before being downgraded to “Meets Most” last year. An employee who returned from parental leave was also reportedly cut after receiving the same ratings.

As a result, many affected employees have been left feeling misrepresented, as being publicly named as an underperformer could harm future job prospects.

“The hardest part is Meta publicly stating they’re cutting low performers, so it feels like we have the scarlet letter on our backs,” another employee said. “People need to know we’re not underperformers.”

Some European employees are protected by regulations

Unlike past redundancies, Meta will not be closing down more offices and won’t make a company-wide announcement. The layoffs will also be staggered across multiple regions. Employees in Asia-Pacific will be notified first, followed by Europe, the Middle East, Africa, and then North and Latin America.

However, employees based in France, Italy, Germany and the Netherlands will be exempt due to local regulations.

For example, in France, local labour regulations around workplace layoffs are very strict. An employer is legally required to justify termination under one of the following conditions: voluntary personal reasons (e.g. workplace harassment), involuntary personal reasons (e.g. an employee is unable to perform their role through no fault of their own) and economic reasons. From there, if an employer plans to undertake mass layoffs, they’d be required to consult with the Social and Economic Committee (CSE) before doing so.

The decline in Meta’s company culture, according to employees

According to Meta, the company has adopted an organisational culture that encourages innovation, teamwork and a growth mindset.

But while the company continues to maintain favourable employee reviews on sites like Glassdoor and Comparably, this latest wave of redundancies has seen ex-employees describe its environment in a very different light.

Specifically, users on Reddit commented that its workplace culture was once a friendly and rewarding environment, but had become more “cut-throat” in recent years.

“When I was there it was the heyday of the company and there was a vibe of people really feeling like we could do something good, both in our products and the way that companies treat employees,” a user wrote. 

“By the time I left, things felt more cut-throat and less friendly. The benefits were still amazing, but the culture was very ‘you are lucky to have these perks so you better work to keep them, but also you are worthless and nobody will hire you once you leave here’.”

Another user commented: “I do not plan on working here much longer – the work-life balance has been extremely terrible and these added policies just confirm this is no longer the company I once loved and was hopeful of working at.”

Unfortunately, Meta is just one of many tech companies carrying out redundancies in what seems like a never-ending cycle of hiring and firing on both sides of the pond. But with more layoffs expected this year in the UK, particularly with economic uncertainties and the increase in National Insurance Contributions (NICs), potentially being branded as an “underperformer” will undoubtedly raise concerns amongst many employees.

Nothing beats a home-cooked meal.

But with the frenzy and flurry of modern-day life, it’s much more difficult to find the time to plan, shop and cook food from scratch.

This was the problem Timo Boldt was addressing when he launched Gousto – a meal-kit delivery service that delivers fresh, pre-portioned ingredients and easy-to-follow recipes straight to customers’ doors.

A notable presence on the Startups 100 Index for 2015, Gousto is now a widely recognised name in the meal kit industry. Facing many highs and lows in its journey, here’s the story of how the company went from a startup idea to a kitchen staple in homes across the UK.

From finance to feasts: how Gousto was founded

Even during his high school years, Gousto’s founder, Timo Boldt, often had entrepreneurship instilled in him, particularly from his godparents.

“They were always pushing me, saying ‘Why are you not starting a company of your own?’,” he commented. “They had started dozens of their own companies, with quite a few going on to be successful. And they lived this amazing lifestyle, so I always looked up to them.”

Having lived between Germany and the US during his studies, Boldt eventually moved to London in 2008, where he started a career in finance as an analyst for financial advisory group  Rothschild, before getting a VP position at hedge fund, Petrus Advisers.

However, just four years into his financial career, Boldt decided to pursue a new venture, which led to the launch of Gousto in 2012. From the start, sustainability and convenience were significant core values for the business.

“I wanted to do something that had a positive impact on people and the planet,” Boldt said. “Food waste is one of the top contributors to carbon emissions, and I could see that health, sustainability, and convenience would massively change how we eat.”

Stumbling, but not falling: Gousto’s post-pandemic hurdle

At the time, meal kits were a novel concept in the UK, with Gousto’s primary competitor being HelloFresh. Still, there was a demand for more accessibility to healthy food, so Boldt made it his mission to offer both quality and convenience – something that the UK’s grocery market was missing.

By filling this market gap, the company experienced rapid growth not long after its launch. Boldt and fellow co-founder James Carter also appeared on BBC’s Dragons’ Den in 2013 but were rejected by investors. Nonetheless, Gousto continued to grow, eventually hitting unicorn status in 2021 and generating up to $110.51 million in revenue in the next decade.

However, Gousto hit a wall in 2022. Post-pandemic inflation saw the company lose £158 million in sales – seeing its unicorn status cut to a £250 million valuation. Moreover, despite obtaining an additional £50 million from shareholders and growing its workforce to 1,700 employees, Gousto had to make multiple rounds of workplace redundancies to get back on track.

AI’s recipe for success: cooking up a thriving business

To tackle its declining sales, Gousto would have to find a way to recover from this difficult period. It wasn’t going to be easy, especially with the beginning of the cost-of-living crisis in 2023, which pushed consumers to become increasingly conscious of their spending habits.

Fortunately, Gousto found its answer by increasing its investment in artificial intelligence (AI) technology. That, and a “combined focus on cost discipline and the capacity reset in 2022”, helped the company increase its profit margins despite “significant inflationary pressures”.

Gousto successfully leveraged AI to personalise meal recommendations by analysing past orders, dietary preferences and other data. Through the use of customer feedback and metadata (e.g. cuisine, cooking method, cooking time, etc), Gousto’s system can get a better understanding of taste preferences, in turn creating customised and tailor-made plans.

Machine learning is now also utilised to predict future customer demands, helping to amend its inventory based on those likely preferences. Moreover, it uses AI to improve warehouse operations, such as order allocation and picking processes. For example, its production facility in Warrington uses auto-replenishment, auto-routing and pick face optimisation, increasing its pack speed to 140% and its accuracy to 99.97%. Operational food waste is also limited to less than 1%.

Gousto’s ingenious use of AI didn’t fall short, as the company achieved a 700% growth in its customer base and hit $93.4 million in revenue in 2024 – a significant jump from its lowest point of $47 million the previous year.

Conclusion

Despite economic challenges, Gousto continues to be a pioneer in the meal kit industry.

As for the future, Boldt announced on LinkedIn that the company launched its “strongest offering ever” at the beginning of 2025, including a bigger menu selection, more recipes for health goals (e.g. high in protein or calorie-controlled) and trialling its next-day delivery service.

Even as the cost-of-living crisis continues and economic uncertainties hurt more businesses, the future is definitely looking appetising for Gousto.

The ongoing deliberation around return to office (RTO) mandates continues as more and more businesses enforce these policies, much to the dismay of employees.

Lloyds Bank was one of many firms introducing its own last year, but came under fire after announcing it would withhold bonuses from workers who didn’t comply.

As companies continue to push for more in-office attendance, it begs the question of whether these kinds of measures are legally sound, or if they could expose employers to lawsuits and reputational risks.

Lloyds Bank’s stance and its potential impact

Lloyds Bank announced that it would tie in-office attendance with performance-based bonuses this year. The banking giant currently uses a hybrid working model, in which staff are required to come into the office at least twice a week.

Employees are expected to receive their bonuses for the 2024 financial year this month, but for senior bankers, office attendance will also be taken into account.

Lloyds enforced its RTO policy in 2023 after concerns over productivity. However, its employee engagement survey for that year revealed a 66% decline in satisfaction, down from 78% the previous year. Unsurprisingly, the changes in flexible work arrangements were blamed for this decrease.

Now, the company’s decision to withhold bonuses for those who don’t come into the office not only risks productivity and talent retention but also raises legal questions.

One potential problem Lloyds could face is whether this decision will violate existing employment contracts, especially if bonuses were previously awarded based solely on performance. If attendance wasn’t originally a condition, employees might argue that the bank is shifting the goalposts unfairly.

Moreover, there’s also the risk of discrimination claims. If certain groups – such as employees with disabilities, caregivers or those with long commutes – are disproportionately affected, the policy could be seen as indirect discrimination under the UK’s Equality Act 2010.

What are your rights?

RTO mandates are legal, but only if the original employment contract states the role as office-based, and if no long-term change was agreed upon. Bonuses based on office attendance are also legal in practice, but pose the risk of discrimination, as previously mentioned. Additionally, if an employee was previously promised a bonus based only on performance, adding an office attendance requirement after the fact could be challenged as unfair or even a breach of contract.

In terms of flexible working arrangements, this is something employees have the right to request under the Employment Relations (Flexible Working Act) from the first day of employment, and can make two requests every 12 months. However, this isn’t guaranteed to go through, as employers can refuse the request.

Finally, if an RTO policy disproportionately impacts certain groups (e.g. employees with disabilities or caregivers), employees have legal rights to make a discrimination claim. A constructive dismissal claim can also be made if the policy significantly changes the terms of employment and makes it difficult for the employee to continue working.

Alternative approaches to RTO

While RTO mandates and attendance-based bonuses are legal, they can hurt employee engagement and morale, as well as risk high staff turnover.

For example, software company Dell sparked controversy last year when it was reported that hybrid and remote workers were less likely to receive a promotion. The company also ordered staff back to the office full-time at the beginning of the month, specifically for remote workers who live within an hour of an office space.

The rise in RTO policies hasn’t resonated well with employees. From increased resignations to staff silently rebelling by working from home in secret, this latest workplace trend has faced a lot of backlash. Workers from the Office of National Statistics (ONS) even voted to go on strike in October, following a year-long dispute over office attendance.

So, what should businesses do if they want more in-office attendance, but don’t want to face backlash or resistance from RTO mandates?

One of the best alternatives is hybrid working, in which employees can split their time between working remotely and working on-site. According to research by ONS, 28% of workers had hybrid working arrangements in the autumn of 2024. Meanwhile, 47% of employees prefer working hybrid, compared to just 11% who prefer a fully remote working model, which strongly suggests that most workers want a mix of in-person and remote work.

Businesses could also incentivise employees to come to the office without having to resort to a full-blown RTO policy. For example, offering certain perks and benefits such as free meals or social clubs, to help improve organisational culture and employee wellbeing.

All in all, RTO mandates aren’t getting any more favourable with employees, as more companies that once embraced flexible working are hitting the headlines for the wrong reasons. What’s more, while basing bonuses on office attendance isn’t illegal, many businesses could find themselves in hot water for discrimination claims or breaches of contract if these schemes put certain employees at an unfair disadvantage.

In regards to job security, it’s been a bleak start to 2025. Stripe has already announced a recent round of layoffs, cutting loose 300 employees (just two years after shrinking its workforce by 14%). CNN, similarly, is reducing its workforce by 6%. Meta is following suit, terminating approximately 5% of its workers, and Microsoft reducing 1% of its workforce.

The long and short of it is we’re in tumultuous times, and workers are headed for choppy waters this year. A big part of the tug-of-war between workers and upper management is work from home culture, and the thorny RTO office debate rages on.

Staff are pushing back on RTO mandates, with flexible working skyrocketing last year, and that trend is only set to continue. But does that risk their relationships with managers? Is there a bias against those that choose to – or must – work from home? Some home workers have no choice, but does that still put them in the firing line?

“Out of Sight, Out of Mind” syndrome

There’s a perception (debatably an unfair one) that if employees are not visible, then there are question marks around their productivity. With the results of a survey by TonerGiant suggesting 41% of Brits feel they are less likely to get a promotion if they don’t go into the office.

There are still those that feel they need to monitor their employees to ensure they’re busy increasing shareholder value, with managers perceiving employees as 3.5% less productive when they work from home. Just this week, Barclays tightened their grip on the hybrid work policy.

So is there actually a bias against home workers? It will ultimately depend on the company, and its particular culture. Take computer giant Dell as an example: last year they announced a slew of penalties that targeted remote workers.

One Dell employee reportedly told Business Insider that remote workers are potentially more at risk of being let go in the event of a company restructure.

Amazon has also been previously known to penalise at-home employees, with Business Insider reporting to have seen messages that suggest those not conforming to RTO mandates could find themselves barred from promotions. Research also shows remote workers are more frequently overlooked for promotions in general.

The party line on RTO from corporate heads seems to be that they want to foster a more ‘fun office environment’, and aim to keep employees engaged. But does that suggest those that resist the idea are pariahs? Are home workers doomed to be branded with a scarlet letter if they don’t want to stand around the coffee machine chatting about last night’s episode of The Traitors with their boss?

With so many major companies back peddling on their hybrid/remote working policies, (whether it be sneakily under the radar or through cringe worthy corporate videos) this could understandably leave remote workers feeling uneasy: “If I’m not spending quality time with the boss, does this put me on the chopping block?”.

The home ground advantage: is remote work actually safer?

The perception is that offices are pushing hard for a return-to-office, making those that favour flexible working potentially targets for corporate wrath.

Despite the pressure mounting from some organisations for staff to get back into the office, evidence actually points to job security actually being far safer for remote workers.

Based on data we obtained for our Startups 100 Index 2025, we discovered some fascinating insights into job safety for remote workers in small businesses: fully remote workplaces were significantly less likely to make layoffs to stay afloat than both hybrid and full-time offices.

Fully remote-working offices only showed a 45% layoff rate, whereas hybrid-model offices had a much higher 56% layoff rate. Full-time offices came out by a significant margin as the most likely to make layoffs to keep themselves running, with a shocking 58% layoff rate.

So despite the ongoing RTO campaign, you’re actually at far less risk of redundancy if you’re working in a fully remote small business.

A major argument for this is that fully remote businesses won’t have nearly the same overheads to consider as hybrid or full-time offices: all the costs of leasing a premises including utilities, phone systems, and insurance. Not to mention supplies and furniture.

These are all considerable costs that can spin out of control for a small business, and result in a harsh impact on your bottom line, forcing some ugly decisions. A fully remote business won’t have to worry about any of these headaches.

How to bond in the remote world

So you might actually be at less risk of redundancy if you’re fully remote (or hybrid), but there’s still the issue of connecting with your co-workers through the cold eye of your laptop’s webcam.

Being remote might not put your job at risk, but it can foster feelings of isolation and leave you feeling disconnected from your team, and worse: overlooked for pay rises or promotions.

But just because you’re remote, doesn’t mean you should be left out. There’s plenty of ways you can bond with your colleagues or clients without actually having to meet up in the real world. Here are some tips to make sure you’re being included, and your efforts are recognised:

Book in regular one-on-one’s with your manager

It’s all well and good being part of a weekly team catch up, but if you’re part of a larger team, it can be easy to get lost amongst the reeds. Make sure you’re booking regular meetings with your line manager, to get some proper face time in.

Have virtual meetings with a range of co-workers

Make sure you’re not just getting face time with your direct manager: it’s a good idea to get some one-on-one time with all the members of your team, and in the wider company.

It may not immediately feel relevant to your role, but it’s always good practice to learn what all your co-workers are up to on a day to day basis, and build relationships in the wider company.

Be proactive

Don’t wait for your manager to check in on you. It can be easy to get lost in your work, but make sure you’re keeping a presence in your team.

Even if you’re performing at a consistently high level, you don’t want a co-worker to see your name on a spreadsheet and think “who is that again?”.

Shout your achievements from the rooftops

If you’re a remote worker, it can feel like your efforts can go unnoticed. If you’re completely remote, make sure your contributions to the company are as visible as possible.

Whether it be via Slack, Microsoft Teams or LinkedIn, if you’ve been smashing your targets don’t be a shrinking violet: let the world know. Visibility is absolutely critical.

In summary

While it seems that companies want workers back in the boardroom five days a week, even if it’s purely for show, the most likely outcome is a compromise. Fully remote working may not prove to be a long term solution, with hybrid work pulling ahead as the new normal, but what does that mean for our job security?

While a flexible working model does still offer some significant cost savings for employers, 2025 still threatens to be a tumultuous year. Just feel somewhat rest assured, the answer to keeping your job secure doesn’t necessarily rest on forcing small talk with your boss in the lift.

If you’re a digital nomad or a remote worker, then your office has likely been the cosy corner of a cafe at some point.

However, cafes have been cracking down on remote workers using their space. Most notably, coffeehouse giant Starbucks announced in January that its facilities are now for paying customers only, meaning remote employees will have to buy something to stay on the premises.

What’s more, research has revealed that Brits are sick of people taking loud video calls in cafes, turning their coffee breaks into unwanted eavesdropping sessions. Cafes across the UK, and even in digital nomad hotspots like Spain, have also banned the use of laptops altogether.

With the ongoing debate around return to office (RTO) mandates, could more cafes be rooting for a shift away from remote work?

Has flexible working gone too far?

Flexible working is a must for many employees these days, including remote work options and work-from-anywhere (WFA) policies.

However, Starbucks isn’t entirely on board with it. Having recently introduced its own RTO mandate for head office employees, the coffee chain is now enforcing stricter rules for remote workers who use its premises, shifting away from its former open-door policy.

A spokesperson for the company said that these changes are a “practical step that helps us prioritise our paying customers who want to sit and enjoy our cafes or need to use the restroom during their visit,”

“By setting clear expectations for behaviour and use of our spaces, we can create a better environment for everyone.”

But despite the demand for flexibility in today’s modern workplace, some have argued that it has gone too far. For example, a Millennial manager went viral after allowing her younger assistant to attend a virtual meeting while getting her hair done at a local salon. Another notable case was when a clip of two women sitting at laptops on the beach in their bikinis sparked debate over whether remote work has become too relaxed.

The other side of the table

While fully remote jobs have declined since the peak of the COVID-19 pandemic, it was reported that 57% of Brits still want the option to work from home. Moreover, the term “remote jobs” is now searched for over 18,000 times a month on Google – a 410% increase over the last five years.

However, for some, working from their own home isn’t a viable option. For example, those living in small apartments without a dedicated workspace may struggle to stay productive, while parents with young children could find it difficult to concentrate properly with household distractions.

According to an article by Broadband Genie, over seven million UK-based workers are regularly opting to work in a cafe over their home. While most respondents claimed this was to be around other people, 27% said it was to improve productivity, likely to escape from home disturbances. Saving money on energy bills and a preference for a coffee shop atmosphere were also popular reasons. 

Additionally, smaller cafes and coffee shops could benefit as they may see an increase in foot traffic from remote workers who are no longer commuting to the office. With more employees choosing to work from these spaces, independent cafes have the opportunity to attract customers by offering strong WiFi, comfortable seating and remote work-friendly environments.

What are the rules for working in a cafe?

Nowadays, there is a lot of distaste for remote workers in cafes, particularly loud video calls. According to a study by YouGov, only 8% of respondents believed that video calls, such as meetings through Zoom or Microsoft Teams, were acceptable in a cafe setting.

And it isn’t just in the UK either, as cafes in Barcelona, Valencia and Santiago have either banned “laptop squatters” from working on their premises or have charged an hourly rate to do so.

However, this doesn’t mean that working from a cafe setting isn’t completely off the cards. There are still cafes that welcome remote workers, but it’s important to follow certain practices. 

For example, 48% of respondents from the YouGov survey said that video calls were acceptable if remote workers used headphones. Speaking quietly on work-related calls also helps to not disturb other customers.

Moreover, most cafes require remote workers to order something if they want to sit inside. The amount of purchases depends on individual policies, such as with Starbucks, which only requires a single purchase to use its premises.

Finally, remote workers have to be considerate of how long they stay, especially during peak hours, as lingering for a long period of time without making additional purchases can take up valuable space for other customers.

Is coworking the answer?

So, working from a cafe is still possible, but you might start to feel guilty about overstaying your welcome – especially if you only buy a single cup of coffee the whole time.

Fortunately, coworking spaces can offer a solution to this issue. Specifically designed as professional workspaces, these spaces provide reliable Wi-Fi, comfortable seating, plus additional home comforts like sofas, tea and biscuits.

The number of coworking spaces popping up has also increased in the UK, with around 2,806 spaces now available. London was reported to be the most popular hotspot, with 788 sites across the city.

Coworking spaces provide a good alternative for those who need a dedicated workspace without the guilt of lingering in a cafe. Whether you’re a freelancer, remote worker or small business owner, these spaces can offer a flexible, professional setting without the pressure to keep ordering coffee or leave your spot during busy hours.

If you want to find a coworking space in the capital but are worried about affordability, check out our list of the cheapest London-based spaces that offer great amenities, flexible memberships and a productive environment – without the hefty price tag.

Multinational bank Barclays has recently announced that it is toughening its hybrid working policy. 

In a memo sent to 85,000 employees, the company now expects its staff to come into the office for three days a week instead of two.

Barclays has become the latest firm to knuckle down on remote working, signalling a shift towards an in-office presence as more businesses move away from flexible work arrangements.

But this latest move once again raises questions about the future of hybrid work in the banking sector, or whether a full RTO (return to office) policy is on the cards for Barclays.

Barclays and other major banks harden office attendance rules

Barclays has had its hybrid working model in place for some time, although front-office or client-facing roles are already expected to attend the office five days a week.

A spokesperson for the bank stated: “We recognise the benefits of balancing flexibility for colleagues with the importance of working together to collaborate in our physical locations.

“Our minimum time in-office requirements vary between business areas depending on the nature of the work and needs of the business.”

Barclay’s announcement comes after other major banks declared tougher in-office policies last year.

Santander – despite once stating that “flexibility is here to stay” – ramped up its RTO in September 2024 by requiring staff to be in the office three days a week, and told employees they had until the end of the year to comply with the new policy.

Two months later, Starling Bank infamously announced an RTO mandate, which saw staff resigning as a result. Employees also slammed the neobank for its organisational culture, describing it as a “grey corporate hellscape”.

Why are more banks enforcing RTOs?

2024 was rife with companies announcing new RTO mandates. However, the banking industry seems to be particularly focused on pushing for in-office attendance.

For example, Santander enforced its own RTO policy to encourage more in-person collaboration, improve teamwork and boost productivity by facilitating face-to-face interactions that might otherwise be difficult to do in a remote setting.

Meanwhile, Lloyd’s Banking Group defended its decision to introduce an RTO mandate based on results from an internal survey, which revealed that the employee engagement rate had declined from 78% to 66% in 2023. The bank also stated earlier this month that senior staff may have their bonuses cut if they don’t go into the office at least twice a week.

Deutsche Bank, which now requires employees to attend the office three days a week, claims that it had enforced this rule due to “inefficient” use of its real estate. The bank’s CEO Chief Sewing and COO Rebecca Short stated in a memo that the company wanted to “spread our presence more evenly across the week.”

Are Barclays heading towards a full RTO by stealth?

Before this announcement, Barclays had already enforced a return to office (RTO) policy for its London-based VPs in May 2024. Before, staff were allowed to work from home at their managers’ discretion.

However, while its latest announcement might feel like a seesaw effect, the number of days required for office attendance seems to depend on individual departments and roles. Moreover, according to a comment on Reddit, the three-day policy hasn’t taken effect in all areas of the company.

“I know people who work for Barclays, not all of them are being asked to go in more,” the comment reads. “Some departments are being told nothing is changing and others are being moved from two days a week to three.”

Barclays’ move to bring employees back to the office more often is just one part of a bigger trend we’re seeing in the banking sector. While it’s still unclear if this will lead to a full RTO policy for everyone, other banks are making similar moves. The change is definitely happening, but the full impact on employee morale and retention remains to be seen.

Let’s be real, who wouldn’t be a scarier boss than Lord Alan Sugar?

As host of the hit TV show, The Apprentice, Lord Sugar has made a career out of hiring new business talent. But it seems he’s not a fan of the recent trend of AI in job applications.

AI tools like ChatGPT can help make workloads much more efficient. That’s one reason why the government heralded AI as the answer to the UK’s productivity crisis in its AI Action Plan, unveiled earlier this month.

However, Lord Sugar doesn’t seem to agree. In an interview with the BBC, The Apprentice host described using these tools as “cheating”, taking aim at job applicants who employ AI to help with their applications, as well as employees who don’t want to return to the office full-time.

Jobseekers are turning to AI to write their CVs

AI systems like ChatGPT are popular for a reason, and one of them is its ability to write just about anything, including a fully-fledged resume.

And job seekers have been quick to catch on, with 45% using generative AI to write, update or improve their CVs, according to a study by Canva and Sago.

It’s no secret that creating a CV and cover letter isn’t a fun task. It’s a long and tedious process filled with reading countless worsening job descriptions, researching hundreds of companies and constantly tweaking and saving heaps of resumes in the hopes of landing at least an interview.

So, many job seekers are turning to generative AI because it tackles this exact problem. Not only can it create multiple versions of a resume for specific job postings, but it can also suggest relevant keywords to ensure it passes through a company’s Applicant Tracking System (ATS).

However, the main drawback of AI-generated resumes is that they lack personalisation, which could make it harder for a CV to stand out. Moreover, AI may not be able to accurately represent a candidate’s suitability for a role, which could lead to hiring regret for the employer.

More businesses are adopting AI to write their job descriptions

Of course, it’s not only job seekers who are leveraging AI, as more employers are also incorporating it into their recruitment process, including through job descriptions. Even Indeed – one of the most popular job search sites – is marketing its own AI-powered job description tool for businesses. 

According to research by Carv, 30% of companies are using AI to create job descriptions. Meanwhile, a study reported by SmartRecruiters revealed that 57% of hiring managers said using AI made it quicker and easier to create job descriptions.

Lord Sugar roots for a return to the office

As well as his evident contempt for AI-generated CVs, Lord Sugar has also been vocal about employees returning to the office full-time, particularly apprentices.

“I’m a great advocate of getting them back to work, because the only way an apprentice is going to learn is from his colleagues,” he commented. “That is lacking from this work-from-home, zoom culture.”

Lord Sugar’s comments follow closely with Lord Stuart Rose, former boss of Marks and Spencer and Asda, who described remote work as “not proper work”.

Despite this, there is still a strong demand for flexible working, with half of UK employees wanting more flexibility in their roles. Younger employees in particular value flexibility and the ability to work from anywhere, with 84% of Millenials and 74% of Gen Z wanting more remote work options. Additionally, 34% of workers aged 25-34 are more likely to resign if RTO mandates are enforced by their employers.

Lord Sugar’s comments, combined with the younger generation’s preference for hybrid models or fully remote working show a clear generational clash in workplace preferences. Moreover, the use of generative AI for both job seekers and businesses isn’t slowing down anytime soon, meaning we’re likely to see more “cheating” CVs over the next year.

At long last, January is over. The winter blues are easing, spring is on its way and what’s more, the dropshipping scene is buzzing with products that are catching the attention of many shoppers.

Whether you’re just starting or looking to expand, it’s the perfect time to explore trending items that are flying off the shelves. Dropshipping suppliers can easily tap into these hot products, helping you meet customer demands and stay ahead of the competition.

Based on data from Google, Amazon, eBay and TikTok, we’ll be sharing the most popular items trending this month – from pet food and perfumes to fashion and automotive tools.

1. Pet food

Nowadays, more and more people are welcoming new pets into their homes. As of March 2024, there are 13.5 million dogs and 12.5 million cats in the UK – an increase of 1.5 million from the previous year. 

So, it’s no surprise that searches for pet food have increased as more owners look for the best options to keep their furry friends happy and healthy.

Certain pet food brands have seen a rise in search volume over the last month, particularly on Amazon and eBay. Specifically, if you have a cat, products from the Whiskas brand are trending on eBay’s deals page.

To attract customers in the pet care market, you should focus on leveraging social media to showcase your products, such as through Instagram and TikTok. Offering niche products for specific pet needs – like hypoallergenic food or eco-friendly options – can also help you stand out.

2. Smartphone screen protectors and cases

Compared to old-school Nokias and the like, smartphones are much more advanced. Beyond regular calling and texting, they have become essential devices for entertainment, GPS navigation, photography and staying connected in every way possible.

But the downside is that they aren’t as robust. While an old Nokia phone can withstand being dropped, tossed or even stepped on without a scratch, smartphones are much more likely to break or become damaged.

According to The Times, 1 in 10 Brits are walking around with a broken smartphone screen, which could be correlated to the increase in searches for screen protectors and shockproof phone cases to better protect devices. Both are trending on Amazon and eBay’s best sellers page, while search volumes for “iPhone 16 pro max screen protector” and “iPhone 16 pro max case” are trending at +21,900% and +5,043%, respectively.

For this, you can attract customers through search engine optimisation (SEO) by targeting trending keywords (like the ones above) in your product titles, descriptions and meta tags. By optimising your listings with high-search terms, your products are more likely to appear in relevant search results on top search engines.

3. Perfume and body mists

Valentine’s Day is just over a week away and among romantic dates, flowers and posh chocolates, perfumes continue to be a popular gift for loved ones. For example, The Perfume Shop sold around 200,000 bottles of perfume on Valentine’s Day in 2024 – an 18% increase compared to the previous year.

And what better way to look for trending perfumes than TikTok? Having become a major hub for online shopping, many brands are utilising the popular platform to showcase their products through video content and influencer partnerships.

Right now, perfumes and body mists are a hot trend on the platform, with a search volume of 129,000 and an upward trend of 122%. As this kind of product is popular on TikTok, you should leverage the platform to create video content around the perfumes your dropshipping business offers.

4. Jackets and coats

January may be coming to a close, but the cold weather is here to stay for a little longer. As we brace ourselves for another chilly month ahead, many consumers are searching for suitable jackets and coats to keep themselves warm.

Unsurprisingly, the rubbish weather means that the UK’s coat market is predicted to generate $2.37 billion (approximately £1.84 billion) in revenue in 2025, with an anticipated annual growth rate of 3.69% from 2025 to 2029.

According to TikTok Creative Centre, the average click-through rate (CTR) for jackets and coats is 2.05%. Meanwhile, the search volume for “coats” is 70,300, with “women’s coats” in particular trending by +49%.

5. Casual dresses

When starting your own dropshipping business, selling clothing is a great way to start. And while most of us are staying wrapped up for the coming month, many are already looking ahead to their spring wardrobe. 

According to Apparel Magic, the spring fashion season begins around mid-February to early March. This means that shoppers are already starting to look for lighter fabrics and new styles that fit well with the warmer days ahead.

Specifically, casual dresses are a hot topic on TikTok, with an average CTR of 1.85%. Search volume is also at 6,300 with an increasing trend of +1,030%. This surge in interest is a good chance for you to jump in and offer a variety of styles and colours that are popular right now.

6. Automotive tools

There are a variety of automotive products that are hitting the top pages for Amazon and eBay. Products like engine scanners, synthetic engine oils and jump starters are trending as car enthusiasts and DIYers are looking for ways to maintain their vehicles and ensure they run smoothly without costly visits to the mechanic.

According to a blog by Bumper, most people in the UK spend an average of £30-£35 per month on trips to the mechanics, so the increase in automotive-related products could be a potential correlation of consumers looking to cut costs and take vehicle maintenance into their own hands, particularly during the cost-of-living crisis. 

For example, the term “car battery jump starter” has a 1,600 search volume and an upward trend of +181 on eBay’s search engine. Again, strong SEO practices are a good way to capitalise on these trends, ensuring your products are visible to customers actively searching for solutions to their automotive needs.

Want to boost your sales all year long? Check out our guide on the best dropshipping products to sell for maximum profit.

Following the government’s flagship AI Action Plan earlier this month, Chancellor Rachel Reeves has laid out a string of wider government measures designed to grow the economy, which includes a vow to build Europe’s “Silicon Valley” in the Oxbridge region.

Speaking at Siemens Healthineers in Oxfordshire, Reeves described the area between Oxford and Cambridge (also known as the Ox Cam arc) as “a hub for globally renowned science and technology firms” adding it “has the potential to be Europe’s Silicon Valley”.

Politicians have long used the Californian region, which is home to many of the world’s most successful tech startups, as a metaphor for a thriving, new business hub for British founders. But is it a realistic ambition? Or is the UK government just ‘Silicon-struck’?

Plans to fuel Ox Cam arc

Together with London, Oxford and Cambridge make up the so-called “Golden Triangle”, an area comprising five leading UK universities that have collectively produced world-leading research into new technologies, such as semiconductor research and AI development.

Golden Triangle institutions often attract greater funding, and both the University of Oxford and Cambridge University have produced a high number of successful spinouts.

That includes Mach42 and Quantum Dice, two technology companies that made our list of the top 100 startups for 2025 earlier this month.

Praising the “huge potential” that both cities offer UK startup talent, Reeves has unveiled a raft of policies to boost the region’s growth and add £78bn to the economy in the next 10 years. These include:

• Improving train links between Oxford and Cambridge
• Creating a new Growth Commission for Oxford
• Prioritising a new Cambridge Cancer Research Hospital

Two weeks ago, the prime minister unveiled his AI Action Plan, a roadmap for harnessing AI to accelerate growth, which included the creation of a large data centre in Culham, Oxford. Reeves today confirmed the plans for this new AI growth zone in her speech.

Presumably, the Ox Cam plan will be paid for from the AI Action Plan funding pool, although some experts have said the £14bn allocated to the government’s blueprint is not enough.

Is our obsession with Silicon Valley healthy?

Politicians have been drawing comparisons with Silicon Valley and the UK’s startup network for years, in order to position Britain as a leading destination for tech investment.

Perhaps the closest Whitehall came to realising that vision was the construction of the so-called ‘Silicon Roundabout’, a new traffic junction in Old Street, East London.

Near to a sought-after location for new businesses, the plan was to revamp the area to better support “innovative, high-tech” ventures. But delays meant it was only finished last June; 13 years after it was first commissioned, and five years later than planned.

Silicon Roundabout could be a cautionary tale for the Chancellor’s latest ambitions. By focusing on far away strategies, the government arguably risks ignoring immediate threats to the UK startup survival rate, such as recent tax rises announced in the Autumn Budget.

That’s what Aman Parmar, Head of Marketing at Bizspace, a coworking provider for startups, warns. Responding to Reeves’ speech, Parmar says “very little – if any – attention was placed on the immediate impact to those already struggling to keep their businesses afloat”.

Agreeing with this sentiment is Ivan Nikkhoo, Managing Partner at Navigate Ventures. Nikhoo stresses that without access to capital, the UK’s Californian dream can’t be realised.

“Silicon Valley’s dominance is driven by an unparalleled concentration of capital, talent, and infrastructure,” he tells Startups. “It has five times more VC funds and raises seven times more capital than London.”

Reeves, “chasing an unrepeatable model”

Arguably, the Chancellor picked a poor week to herald Silicon Valley. Over the weekend, the tech world was thrown into chaos when China released DeepSeek, a new AI chatbot that it claims to have developed for a fraction of the cost spent by US developers on similar tools.

The episode is a reminder that there is no such thing as replicating innovation in the startup world. If the UK is to build a tech ecosystem to rival Silicon Valley, Nikkhoo argues it must respond to the unique needs of its existing founder community; not overseas enterprises.

“Instead of chasing an unrepeatable model, the UK should focus on building the best possible version of its own ecosystem”, concludes Nikkhoo, “one that attracts high-quality investors, supports startups at every stage, and removes friction for scaling businesses.”

Valentine’s Day is right around the corner which means the month of matchmaking is officially about to begin. And in February, there’ll be plenty of opportunities for making new professional connections by attending a networking event near you.

Below, we’ve listed nearly 50 get-togethers around the UK for entrepreneurs to meet their next (business) partner in 2025. Each one is completely free to attend. We’ve also organised the full list by closest cities to help you get on the guest list that’s nearest to you.

Chinese artificial intelligence (AI) startup DeepSeek has recently hit the headlines for its large language model (LLM) release, which is set to challenge the likes of OpenAI and other popular AI systems.

DeepSeek, which was founded in 2023, has surpassed tools like ChatGPT and other competitors to become the highest-rated free app on the Apple App Store in the UK, US and China.

But despite its fast success, DeepSeek has also faced criticisms and concerns, particularly around its models potentially reflecting China’s political views. Moreover, its cutting-edge technology could make it difficult for UK AI startups to compete.

What is DeepSeek?

Deepseek is an AI lab which develops open-source LLMs. It was founded in 2023 by Liang Wenfeng, who also founded the Chinese hedge fund High-Flyer. The company focuses on developing advanced AI models and has gained traction for its cost-effective and high-performance solutions.

Its advanced reasoning model, DeepSeek-R1, competes with OpenAI’s o1 in performance – excelling in tasks like mathematics, coding and problem-solving. The model and its variants, including DeepSeek-R1 Zero, use advanced training methods like reinforcement learning (RL) and multi-step processes to build their skills and improve performance on tasks.

What makes DeepSeek stand out?

DeepSeek has caused a stir in the AI space, mainly because it allegedly released groundbreaking models that deliver performance on par with the world’s top chatbots, but at a fraction of the cost. Researchers behind its model claim that it was developed for less than $6 million, significantly less than its competitors.

Its commitment to being open-source has also made it stand apart from rivals. Unlike its US counterparts, such as OpenAI and Meta, DeepSeek’s technology is available to everyone for free. This means developers worldwide can access and improve DeepSeek’s models, making it easier to collaborate and share ideas.

However, people have also raised concerns that because DeepSeek was developed in China, its system might be influenced by the country’s political views, especially when it comes to concerns regarding human rights. Critics worry that these models could be designed to avoid or downplay controversial issues in a way that aligns with the Chinese government’s stance.

What does this mean for UK AI startups?

While DeepSeek has garnered a lot of positive attention for its unique approach, it’s likely to be a challenge for UK AI startups for several reasons.

Most notably, DeepSeek’s fast advancements and global reach could easily overshadow smaller businesses. After all, its model has already been able to demonstrate cutting-edge performance in tasks like reasoning, coding and mathematics. As a result, UK startups may struggle to match these capabilities without significant investment in research and development.

Additionally, because its technology is open-source, it gives other businesses and developers access to high-level AI tools without the need to create their own from scratch. This makes it easier for larger companies to integrate DeepSeek’s models into their products and services, leaving smaller businesses at a disadvantage.

DeepSeek’s rapid rise is creating both opportunities and challenges for startups in the AI space, as its cost-effective and high-performance models could put a lot of pressure on competitors, especially smaller businesses and startups.

Still, there are plenty of AI startups that have disruptive potential, especially those featured in the Startups 100 Index for 2025. These companies, such as ROBIN AI and MAGIC AI, are pushing the boundaries of AI technology in unique ways, proving that there is still room for smaller companies in such a competitive market.

The four-day week debate is winning over UK bosses, data suggests. Two hundred companies have adopted a four-day working week (4DWW) so far, the campaign group, the 4 Day Week Foundation, has revealed today.

As reported by The Guardian, the companies represent a range of sectors, with marketing and tech leading the way. Collectively, they represent more than 5,000 UK employees, each of whom now has a three-day weekend. And more Brits could be joining them this year.

The update is the latest sign that the 4DWW movement is gaining momentum. At the end of last year, Startups surveyed 531 SMEs about their plans for 2025. 13% told us they wanted to adopt a four-day week this year, an uplift of 1 percentage point from last year’s figures.

Who is adopting a four-day week?

For over a century the five-day workweek has been considered the cultural norm in the UK. But over the past few years, support has been quietly growing for the 4DWW as an alternative shift pattern that allows for greater work-life balance.

The 4 Day Week Foundation reports that all 200 firms have signed up for the ‘gold-standard’ four-day week, where full-time workers earn the same as if they work a five-day week, with an extra day off. Leading the charge is London, where 29% of adopters are based.

Variants of the 4DWW exist, however. Firms such as Asda, for example, have tested staff working their same hours over four days instead of five. In Startups’ survey, 4% of UK SMEs told us they had adopted some form of a four-day week so far.

Of the 13% of businesses that told us they planned to introduce a four-day week this year, the majority had fewer than 10 employees, suggesting that the policy may work better in smaller teams where skills and knowledge can be more evenly distributed.

However, plenty of large employers have managed to successfully implement the employee benefit. That includes Atom Bank, a large business with a team of over 540 workers.

Will a 4DWW fix the productivity crisis?

Supporters of the four-day week point to the positive impact it has on staff morale. With a three-day weekend, employees have more time to recover from a stressful week. As the policy has grown in popularity, it’s also become a useful tool for attracting new talent.

It’s not all just for workers’ sake, however. Findings from the UK’s largest four-day week trial suggest it could positively impact productivity in the workplace.

Doing so would fix a big headache for bosses. Due partly to a rise in the number of people unable to work due to ill health, worker output is on the decline.

The UK government has previously suggested that flexible working policies, designed to reduce burnout, could be a solution to the culture of “presenteeism” that has taken hold.

Our data supports this theory. 47% of companies that worked a four-day week told us that they felt it and other flexible working policies contributed positively to company productivity.

Can employers stop worrying and love the four-day week?

Over 200 companies have already been swayed by arguments for the four-day week and there are clear incentives for both sides of the boardroom table. But the UK’s dreary economic outlook means plans to adopt a four-day week this year could still be rained off.

Last November, the UK’s second-largest four-day week trial went underway. Run by the 4 Day Week Campaign and consultancy firm Timewise, the pilot saw 21 organisations with roughly 1,000 employees switch to a 4DWW for six months, ending next May.

Bosses debating whether to roll out the policy in 2025 should keep a close eye on this trial to evaluate its success. If the same positive results from the first pilot can be replicated, the benefits of a four-day week for businesses will be even harder to ignore.

The average UK salary passed £40,000 last month, according to data from the latest UK Job Market Report, suggesting that employers will be prioritising talent recognition this year.

The report, released by job matching platform Adzuna, has found that demand for skilled and motivated staff has pushed salaries up by 7.15% from £37,577 in December 2023, meaning the median UK worker will this year earn an estimated £40,263 per year. 

Last year, we surveyed 531 SMEs about their spending plans for the coming 12 months. Our findings show that just under nine in ten business leaders planned to increase wages this year, suggesting that the new average could rise rapidly in 2025.

UK pay beats inflation

With the rising cost of living still putting strain on UK households, likely few of us would argue we are getting better off. But according to the data, 2024 was a good year for UK pay. 

Last year, official statistics show that pay packets increased by 3.4% between September and November 2024 after inflation, the fastest pace of growth for more than three years.

The new number marks the first time the figure has topped £40k since Adzuna first began publishing its Job Market Report back in 2016. 

It also means the average salary has risen by over £1,000 each year in the past decade. Office for National Statistics (ONS) data shows that iIn 2015, median gross annual earnings for full-time employees was £27,600.

Should bosses be more flexible?

Adzuna analysis says the pay boost reflects a surge in demand for skilled staff, as bosses apparently raise wages in order to entice sought-after roles such as those in tech and AI.

However, it might not be working. The Job Market Report also shows that job openings are now taking more time to fill as bosses struggle to attract the right candidates, with the average duration of job postings having increased from 32.8 days to 34.1 days in December.

While few of us would turn down a raise, research suggests that employees may care less about pay, with many instead having their heads turned by flexible working benefits.

Staff surveys have shown that many UK job hunters would choose working from home over a pay rise, suggesting that offering more niche employee benefits might be more impactful for recruitment drives in 2025.

Shh! Salary transparency on the up

Exclusive survey findings from Startups indicate that 88% of SMEs planned to increase employee wages in 2025, up from 82% last year. 

Some workers could see big windfalls. 15% of business leaders told us they planned to increase wages by 11%. For most, though, the bonus is likely to be smaller. One third of businesses told us they will up wages by 5% this year, the most popular response overall.

Employers seem to be shy about sharing these wage hikes with new hires, however. Adzuna’s research also shows that 2024 was the worst year on record for salary transparency, with 54% of jobs ads choosing to hide salary information from candidates.

Clearly advertising salary can be attractive to job seekers as it suggests that the company is confident that their published offer is competitive. However, it can cause resentment if clear salary bands have not been established with existing employees.

It might not all be deliberate. Many job seekers have spotted an alarming trend towards AI in recruitment which has led to a growing number of poor quality job specs being published. According to an iHire survey, only 48.6% of employers now think their job ads are effective.

CEO salaries continue to rise

Pay might be rising quickly for UK employees, but it would have to skyrocket in order to compete with average wage rises for the country’s top-earners.

CEO salaries have been climbing upwards at a record rate over the past few years. Analysis from the High Pay Centre has found that by midday on 6 January, the UK’s top chief executives had already out-earned the median worker’s salary for the whole of 2025.

Median FTSE 100 CEO pay currently stands at £4.22 million, which means it is now around 104x higher than the average salary presented by Adzuna.