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Universal basic income trialled in two places in England

by Madaline Dunn

There’s no denying we are living in challenging times right now. The cost of living crisis isn’t subsiding, financial insecurity is on the rise, the climate crisis is worsening. We’re also living in an era where technology is reshaping quite literally everything, including the world of work with AI and automation ramping up.

Universal Basic Income (UBI) is being proposed as a way of safeguarding against these disruptions, bolstering income security and reducing poverty.

In this week’s article, we’ll walk you through:

• What universal basic income is
• Where, why and how is it being trialled
• The pros and cons of the introduction of universal basic income.

What is universal basic income?

The idea of Universal Basic Income stretches as far back as 1516 in Sir Thomas More’s Utopia, and it’s essentially a guaranteed income for everyone in society. As of late, following the disruptions of the COVID-19 pandemic, the rise of automation and AI, it’s becoming a serious conversation.

It’s been tried in many places all over the world. In the US, for example, there are long-running UBI schemes, including in Alaska. It’s also seen in the Eastern Band of Cherokee Indians Casino Dividend in North Carolina. Elsewhere, Finland has trialled UBI schemes, as have Spain, the Netherlands, Kenya, India and more. Currently, in Wales, there is a basic income pilot for 18-year-olds leaving the care system. Over 500 participants are receiving £1,600 a month for two years after turning 18.

As noted, the pandemic really revitalised conversation around UBI, and back in 2020, over 170 MPs and peers actually called for a basic income. As we know, this didn’t go forward, and instead, the government introduced furlough.

At the time, the now Prime Minister and then Chancellor, Rishi Sunak, told the Commons: “We’re not in favour of a universal basic income, although we have strengthened the safety net for the most vulnerable in our society with over £7bn invested in improving our welfare system.”

Speaking about the increasing need to pivot toward UBI, Will Stronge, the director of research at the thinktank Autonomy, said: “Our society is going to require some form of basic income in the coming years, given the tumult of climate change, tech disruption and industrial transition that lies ahead. This is why building the evidence base and public engagement now is so important, so the ground is well prepared for national implementation.”

What’s going on with the trials?

The UK is currently running a micro pilot scheme to test this out. Led by Autonomy, the scheme will run in central Jarrow, in north-east England, and East Finchley, in north London. A total of 30 people will be randomly selected from a group of volunteers, with 20% of places allocated to people with disabilities. They will receive £1,600 every month for two years. This will cost £1.15m across the two-year period.

Alongside this group, there will also be a control group, which will not receive the basic income amount, and their experiences will be monitored alongside the other group.

The likes of Green MP Caroline Lucas welcomed the plans and said: “It’s so exciting to see these plans for England’s first ever basic income pilot scheme,” she said. “We are in such uncertain times – worsening job insecurity, spiralling cost of living and a welfare state creaking at the seams.

“We need big, bold ideas to provide security and dignity for all – tackling poverty, improving wellbeing and transforming society. The government can’t ignore this idea any longer,” she added.

The Green Party has long advocated for its introduction. Back in 2019, for example, it became the first political party to promise a fully costed Universal Basic Income for every resident by 2025.

Meanwhile, Cleo Goodman, a co-founder of the initiative Basic Income Conversation, commented: “We’re hopeful that this plan will result in the first ever basic income pilots in England. No one should ever be facing poverty, having to choose between heating and eating, in one of the wealthiest countries in the world. Basic income has the potential to simplify the welfare system and tackle poverty in Britain.”

According to estimates, if this kind of UBI programme was implemented on a national level, it would reportedly cost just under £1 trillion.

Weighing up the pros and cons

There’s no escaping the working landscape looks very different on the horizon, and indeed, Stronge notes: “With the decades ahead set to be full of economic shocks due to climate change and new forms of automation, basic income is going to be a crucial part of securing livelihoods in the future.”

Further, he added that “all the evidence” demonstrates that it would “directly alleviate poverty” and “boost millions of people’s wellbeing.” He says that, ultimately, the potential benefits are “just too large to ignore.”

But, it’s not without its critics, and, as we’ve outlined above, it would be expensive, as well as requiring a huge overhaul of both our tax and social security systems. But, with such big disruptions to work and living in store, large-scale changes seem almost inevitable.

There are also critics who argue that UBI would de-incentivise people from working and result in inequity. That being said, regarding the former point, a Finnish study on UBI found that there was actually a greater incentive to work, and also meant that people had more time to pursue business ideas.

With the trial running for two years, it will be some time until we have data to analyse, but it’s an idea that’s increasingly entering the mainstream.

Tags: Economy, employment, universal basic income

Self Assessment rules refresh

by Madaline Dunn

As the cost of living crisis drags on, nearly 200,000 low-earners have been hit with HMRC penalties for failing to file their tax returns. This high figure is a reminder of the scale of confusion that surrounds Self Assessment.

At The Salary Calculator, we’ll walk you through the key information, to help safeguard you against being hit with tax-related fines. Below, we’ll explore and explain:

• How many penalties were issued and why,
• The rules around Self Assessment,
• HMRC’s response and upcoming changes

HMRC issues hundreds of thousands of penalties to low earners

Recent figures have revealed that between 2018 and 2022, HMRC handed out 660,000 fines to earners who didn’t owe any tax. Eleven million people are required to submit a Self Assessment income tax return to document their other sources of income or past income. Missing the submission deadline on 31 January, means people are automatically hit with a £100 penalty.

For the 2020-21 financial year, 184,000 people were fined for failing to complete a Self Assessment tax form by this deadline. These 184,000 taxpayers were paid less than £12,500 a year, meaning they were not subject to income tax. A total of 58000 of the 184,000 low earners who were fined were successful in their appeal, bringing down the total to 126,000.

Thinktank Tax Policy Associates (TPA) obtained the data following a FOI request, and found that 92,000 people among the lowest-paid 10% of the population were fined by HMRC in 2020-2021, while just 39,000 of the highest-paid 10% received fines.

Speaking about this, Dan Neidle, a tax campaigner and founder of TPA, said: “We believe the law and HMRC practice should change. Nobody filing late should be required to pay a penalty that exceeds the tax they owe.”

“People are falling into debt and, in one case we’re aware of, becoming homeless as a result of HMRC penalties. Advisers working with low-income taxpayers see this kind of situation all the time, and filing appeals for late-payment penalties often makes up a significant amount of their work.”

What are the rules and penalty charges?

So, what are the rules around Self Assessment that you need to adhere to in order to avoid being hit with penalties?

If, in the last tax year, any of the following applied, you must file a tax return:

• You were self-employed as a ‘sole trader’ and earned over £1,000 (prior to deducting anything you can claim tax relief on)
• You are a partner in a partnership business;
• You are a minister of religion;
• You are a trustee or the executor of an estate.

There are some other circumstances where you might also need to file a Self Assessment Tax Return. You can find out more about that here.

It is important that you register with HMRC for Self Assessment by 5 October, following the end of the tax year in which the income or gains first arose. If you fail to do this, you may be subject to penalties. This deadline is extended to 31 October for paper returns.

Other key dates include 31 January, which is the deadline for both submitting your online tax return and paying the tax that you owe.

The second payment on account is due 31 July 2023, and by January, if you still owe HMRC tax following your payment on account, you’ll need to pay a balancing payment.

If you miss the submission deadline, you will be hit with an automatic £100 automatic late-filing penalty.

If you fail to pay this for three months, the penalty can begin to increase by £10 each day, up to a maximum of £900 for 90 days.

At six months, a flat £300 additional penalty can be applied, or 5% of the tax due, whichever is higher, and if after 12 months you’ve not paid, you can incur another £300 penalty.

What was HMRC’s response and are there incoming changes?

Following a wave of criticism, an HMRC spokesperson released the following statement: “The government has recognised that taxpayers who occasionally miss the filing deadline should not face financial penalties, and has already announced reform of the system.”

So what reforms are set to be introduced? From 2026 onwards, the current standard £100 fine for late filing of Self Assessment tax returns will change to a points-based system.

According to HMRC, this will mean that those who make an occasional mistake won’t be hit with big fines straight away. Instead, those who miss the filing deadlines will be given a point, and a financial penalty will only be charged to them when a set number of points is reached.

The Government policy paper outlines that taxpayers will receive a point every time they miss a submission deadline, and HMRC will notify them when they receive a point.

When they reach a particular threshold of points, determined by how often they’re required to submit, a financial penalty of £200 will be charged, and they will be notified.

These thresholds are as follows:

• Annual – 2 points
• Quarterly (including MTD for ITSA) – 4 points
• Monthly – 5 points

As per these new rules, another £200 penalty will be issued for every subsequent late submission, but the taxpayer’s points total will not increase.

However, despite calls to reform the system further, the spokesperson said deadlines for returns are “necessary for the efficient functioning of the tax system,” adding: “We strongly encourage anyone who does not need to file a return to tell HMRC.”

“Our aim is to support all taxpayers, regardless of income, to get their tax right, and details of what to do if a person no longer needs to file a return are included in reminder letters every year.”

There are also further upcoming changes to Self Assessment, too. From April 2026, those who file Self Assessment reports each year and are self-employed, with annual gross income of over £50,000, will have to comply with the government’s new Making Tax Digital (MTD) for Income Tax rules. As per these rules, these taxpayers will have to keep records in a digital format, using specific accounting software packages or apps or maintain spreadsheets for recording business transactions.

Further, instead of a yearly report, people will be required to submit quarterly updates to HMRC. The deadlines for this will be as follows:

• 6 April to 5 July
• 6 July to 5 October
• 6 October to 5 January
• 6 January to 5 April

In addition to the quarterly returns, this will conclude with submitting an ‘end-of-period statement’ to confirm the final taxable profit for the accounting period.

From April 2027, those who file a Self Assessment tax return and are self employed, with an annual gross income of between £30,000 and £50,000 will be required to do the same.

Tags: HMRC, income tax, making tax digital, Self Assessment

The current state of crypto

by Madaline Dunn

Crypto is in a constant state of flux. In 2022 we witnessed the infamous crypto-crash, it’s now in the midst of regulatory changes, and two of the biggest crypto companies are currently facing lawsuits. With so much confusion and incoming crackdowns, it makes sense that you might be having questions about what’s happening and how the crypto landscape is changing.

This week, at The Salary Calculator, we’ll walk you through:

• How the current crypto market is faring,
• Legislative changes and regulated crypto activity
• What’s happening with Britcoin
• How to stay as safe as possible when trading

How is crypto faring?

There are currently 23,171 cryptocurrency projects in the crypto market amounting to £954 billion, with the leading three being Bitcoin (BTC), Ethereum (ETH), and Tether (USDT). The former is the original cryptocurrency and the world’s largest, with a 1 Bitcoin worth £24,019.77, up from £18,929 in August last year. However, as highlighted, despite this, the crash saw it fall from its all-time high of £69,000 the year prior to this much lower figure.

Ethereum, similarly, has fallen meteorically; last year in May, the cryptocurrency fell over 20 per cent in 24 hours – at the end of June, it was worth £1,481, with a market cap of £178.1 billion.

Tether, meanwhile, lost USD 20 billion in 2022, but according to the latest reports, it has now recovered this, surpassing USD 83.2 billion in market capitalisation.

However, for the most part, trust has not been restored in crypto, and experts say that the road to recovery will be long. Indeed, considering the continued volatility of the currency, experts say that if you choose to invest in crypto, keep investment minimal and only weigh in money that you can afford to lose. It’s likely last year you will have seen stories of investors losing their entire life savings after betting on crypto – and it’s important to remember that even the most tech-savvy individuals are at risk of losing money, because the market is extremely speculative.

Legislative changes regulating activity and risk

There have been lots of regulatory shifts related to crypto in recent years, and just recently, the UK parliament moved one step further to recognising crypto as a regulated activity in the UK, voting the Financial Services and Markets Bill (FSMB) through to the House of Lords (HoL).

The legislation contains provisions to:

• Include stablecoins under the country’s payments rules,
• Include crypto as a regulated activity, and
• Supervise crypto promotions.

According to reports, new regulations could be introduced within 12 months.

Further to this, the FCA has also introduced new rules for marketing cryptoassets, whereby financial promotions on cryptoassets will only be permitted if they are “made or approved” by a firm with certain status with the FCA2. Further, if a firm promotes crypto, it must have clear risk warnings so that adverts are “clear, fair and not misleading.

There were a huge amount of hacks on crypto in 2022, whereby hackers stole a record $3.8 billion worth of cryptocurrency globally last year; 2022 was subsequently identified as the biggest ever year for hacking. And, indeed, this should be a warning to consumers who should be aware that crypto is still an environmental that comes with serious risk.

Speaking about the potential risk that consumers expose themselves to when dealing with crypto, Sheldon Mills, Executive Director, Consumers and Competition, said: “It is up to people to decide whether they buy crypto. But research shows many regret making a hasty decision. Our rules give people the time and the right risk warnings to make an informed choice.”

Further, Mills said that consumers should “still be aware” that crypto remains largely unregulated and high risk, and that those who invest should be prepared to “lose all their money.”

Interestingly, despite this ongoing warning, last year, the FCA found that almost one in 10 people surveyed owned cryptocurrencies in 2022.

Further, the International Monetary Fund (IMF) has even recently gone back on its advice that countries should ban crypto, and is now saying that outright bans “may not be effective in the long run.”

Is Britcoin advancing?

There’s been a lot of hype around Britcoin; some have said it will bring legitimacy to crypto, while others have criticised the proposal to introduce the digital currency, claiming that it will be detrimental to the UK economy and people’s privacy.

The House of Lords Economic Affairs Committee, for example, found that the introduction would see “a lot of risk” with “very little” reward. Further, it outlined that if Britcoin allowed anonymous transactions, it would be open to the same kind of criminal risks as the current cryptocurrencies, but if it introduced potential ‘safeguards ‘against this, privacy would be at risk. Indeed, a centralised digital pound would mean that all spending would be recorded.

Regardless of the criticisms, it appears that Britcoin is pushing ahead and projections are that it could arrive by the end of the decade. Indeed, Project Rosalind, a joint trial run by The Bank for International Settlements and the Bank of England, was trialling the best way an Application Programming Interface (API) could be implemented in central bank digital currency (CBDC) for retail transactions. This trial recently concluded, with it reportedly showing the potential CBDCs have for introducing “programmability” to money and it looks like things will be progressing further.

Things to bear in mind when trading

While it’s important to enter trading with the knowledge that it is inherently risky, some of the following tips can help you trade a little more safely and is advise that should always apply to cryptotrading.

1.) Research is always your friend. Whether you’re looking for a cryptocurrency exchange to trade on or deciding which cryptocurrency you’ll proceed with – you need to research in depth. Make sure to choose an exchange with high-security features. Likewise, with cryptocurrency itself, review reputation, risk and track record.

2.) As outlined above, crypto is prone to being hacked, so you need to keep your money secure. One of the best ways to do this is to use a crypto wallet. Here, either get a digital wallet on your computer’s hard drive or a physical hardware wallet. This is also key for ensuring you don’t misplace your crypto – as many as 1 in 5 Bitcoins have been misplaced.

3.) Get serious about security. Say goodbye to easy-to-guess passwords and use a password manager to help you store your highly-secure passwords.

Tags: Britcoin, cryptoassets, cryptocurrency, investment

Eating healthy when food prices are high 

by Madaline Dunn

Life’s not been too easy on the bank balance as of late. From sky-high rent to eye-watering energy costs, for many, day-to-day living has never felt so expensive. Food prices are, of course, also rising dramatically and, over the last year, have reached record highs.

When food shops are so expensive, it’s understandable that you might feel less able to assemble healthy, nutritious meals. But, at The Salary Calculator, we’re here to help. In this week’s article, we’ll walk you through:

• What’s going on with food price inflation
• Top tips for affordable healthy eating
• How switching to plant-based can save you money, keep you healthy and protect the planet

Food price inflation

According to reports, food prices in the four weeks to May were 17.2% higher than they were a year ago. There are a number of reasons for this, the Russia-Ukraine war impacting energy, high animal feed and fertiliser prices, supply chain issues, extreme weather affecting harvests, and Brexit. While prices have dropped slightly since April, as Fraser McKevitt, the head of retail and consumer insight at Kantar, says, it’s still “incredibly high” and only down 0.1 percentage points.

Currently, inflation in the UK is higher than in other countries, such as Germany, 7.6%, France, 6.9%; and the US, 4.9%. Overall, food prices have risen at twice the rate of overall inflation, with dairy particularly affected, rising three times faster than other items. Four pints of milk, for example, is now 30p higher than this time last year at £1.60, while a 400g block of cheddar cheese is up 39%. But, across the board, groceries are costing more:

• 1 kg of granulated sugar is up 47%,
• 1kg of potatoes is up 28%.
• Olive oil is up 46.4%
• Sauces, condiments, salt, herbs and spices are 33.9%

It’s no wonder then that people are feeling the pinch, and the impact has been wide-reaching, with shoppers trying to make savings wherever they can. Research shows that own-label item purchases have shot up by 15.2 per cent, and more people are also shopping at budget supermarkets like Aldi. Aldi, for example, saw a 24 per cent sales increase, making it the fastest-growing grocer this month, while Lidl’s sales increased by 23.2 per cent.

However, you might be wondering why supermarket prices are still high despite costs coming down. Well, some believe that retailers are trying to make up for their fall in margins last year.

Regardless of why, consumer group Which? has called on the government to undertake its review of food pricing rules as quickly as possible. Rocio Concha, the Which? Director of Policy and Advocacy said: “It’s good news the government has committed to reviewing pricing rules, but this must be undertaken as soon as possible as much clearer pricing is vital in enabling shoppers to compare prices and find the best value products.”

Adding: “Supermarkets should also be making it easier for people by urgently committing to stocking essential budget ranges in all their stores, particularly in areas where people are most in need.”

Tips for healthy eating while prices are high

Considering the above, it’s understandable if you’re struggling to keep your weekly shop costs low, but below, we’ve got some tips for you.

Buy seasonal: Buying seasonally is cheaper because seasonal foods are more easily available in supermarkets and often not imported, which is a big plus from an environmental perspective, too, as it means your food travels fewer food miles. Seasonal food is also often fresher.

So, what’s seasonal? Well, for example, broccoli is seasonal from August to October, leeks from September to March, and cauliflower, from January to April. For fruit, you’ll get apples between September and February, tomatoes from June to October, and rhubarb, from January to June. If you live near to a local farm stand or farmer’s market , this could be a good go-to. For more information about seasonal food, click here, or for recipe inspiration, check this out.

Buy own-brand, “value” or “essential” or “basic” label: Buying supermarket own-brand products can save you a ton of money and these days, more and more supermarkets are coming out with their own value selection, even Co-op, which was a little late to the game. Head over here to review some of the best own-brand products.

Keep your eyes peeled for yellow stickers: While not always helpful for all items, it’s always worth checking out a supermarket’s yellow sticker selection, which features an assortment of reduced items often near to their best before or sell-by date. ​

According to the site SkintDad, the best time to go yellow-sticker-hunting at Tesco is around 8 pm or around 30 minutes before smaller stores close, while at Sainsbury’s, it’s 7 pm, and at Morrison’s, it’s 6 pm.

Freeze your bread: Freezing your bread can make it last a lot longer, for months, even. Plus, freezing bread doesn’t mean compromising on texture or flavour when sealed and thawed correctly.

Meal planning: Meal planning saves both time and money. When you have a plan while shopping, you’ll avoid buying unnecessary groceries, and, plus, you won’t have to step inside a shop during the week, meaning you won’t be tempted to waste money on things you don’t need.

Make your own sauces & soups: It might be tempting when you’re feeling lazy to buy a tomato sauce rather than make one yourself but making sauces from scratch can be a lot cheaper, plus you can make them in bulk and freeze them. The same goes for soups and dressings.

Saving pennies with plant-based power

Plant-based diets have really become popular in recent years for a number of reasons, including as part of a vegan lifestyle, informed by concerns for animal welfare and the planet’s health. Learn more about that here and here. Alongside these benefits, going plant-based can actually be a lot cheaper, too. Especially considering that inflation has hit meat and animal products nearly twice the rate of vegetables.

There’s a misconception that plant-based diets are expensive, and while that might apply to some vegan alternatives, such as processed plant-based meats and cheeses, eating whole foods can save you a pretty penny while still being delicious and packed full of flavour, whether that’s beans, lentils, tofu, or tempeh.

Research by Oxford University, for example, found that those following a vegan diet could reduce grocery bills by as much as 34 per cent compared to the costs associated with a typical Western diet.

Where many people struggle with vegan diets is missing cheese. Vegan cheese company Violife found that it’s the main reason holding around 45% of people back from making the switch. It’s not surprising, either, considering that cheese contains large amounts of protein casein, which triggers the same part of the brain as hard drugs!

However, this is where nutritional yeast flakes come in, or Nooch, as they’re more appetisingly known. These cheesy-flavoured flakes are high in B12, zinc and protein and can be sprinkled over plant-based meals to satisfy your cravings for a cheesy hit and in a more nutritionally balanced way.

For some recipe ideas, check out the following links:

• Ela Vegan 
• The Vegan Society 
• Veganuary 
• Vegan Food & Living 

Tags: cost of living crisis, Economy, food prices, shopping

The working from home debate

by Madaline Dunn

Back in 2020, as the Covid-19 virus took hold of the world, working from home became compulsory for those who were able to do so. And so, for many, came the rise of endless Zoom calls and Teams meetings, virtual social lunches, much more time at home, and fewer hours commuting.

However, as the world has slowly gained back control over the virus, WFH has endured in many workplaces. That said, the majority of people still never work from home (63.9%), 21.4% work in a hybrid model, and only 7.8% of workers permanently work from home.

Yet, despite the above figures, and many who choose to work from home touting the benefits of doing so, recently Chancellor Jeremy Hunt, speaking at the British Chambers of Commerce conference, said workers should return to the office unless they had a “good reason not to.” One of the main reasons he cited included that WFH stifles creativity.

So, what’s the basis behind his argument, is there any truth in it, and what does the workforce think? In this week’s article at The Salary Calculator, we’ll walk you through:

• The statistics on productivity,
• How creativity is faring at home versus the office,
• How WFH impacts mental health and relationship building,
• What workers’ preferences are.

Variability in productivity

When it comes to productivity and WFH, depending on who you talk to or which sources you scan through, you’ll get a very different picture painted. For example, a study conducted by Stanford, which surveyed 16,000 workers over a nine-month period, found that for those working from home, their productivity was boosted by around 13%. A few contributing factors included having a quieter and more convenient place to work in and working more due to fewer breaks. Further, it wasn’t just productivity that was boosted; workers also said they felt more satisfied, and attrition rates were even cut by half.

This is supplemented by research from TechTalk which found that 55% of the 2,000 work professionals it surveyed concentrated better when working from home. Similarly, Gitlab found that 4 in 5 workers would recommend remote working to a friend, and 81% of people surveyed felt satisfied with remote working.

That being said, while individual productivity might be thriving in some cases, surveys show that teamwork isn’t faring so well. Gitlab, for example, found that only 37% said the organisation they work for does a” good job” of aligning work across projects.

Creativity in the workplace versus WFH

One of the main reasons Hunt has cited for a return to the office is his concern about creativity or lack thereof. However, while there is no definitive data, some research shows that employees can be just as creative, if not more so when working from home. Research from Better Up found that people were 56% more creative and thought more innovatively when working remotely.

Some of the reasons that the research team gave for explaining these results were that long commutes and excessive meetings, more time being alone and thoughtful, and being in a place of safety and strength contributed to more creativity. However, there are two sides to this, and research published in Nature on a field experiment across five countries actually found that more video-conferencing, something more prevalent in remote working, in fact, inhibit the production of creative ideas. Indeed, some workers are worried about this, with around 18% concerned about their creative output outside the office.

One of the common arguments regarding this is that without being in the office, workers don’t have the opportunity to bounce ideas off each other or spark up conversations that lead them down the road of innovation. There are no so-called “water cooler moments.” However, it really comes down to an individual’s working style.

Mental health and relationship building

A core issue often explored when discussing the WFH dynamic is how it affects mental health, well-being and relationships. Again, as with all of these areas, there’s a huge level of variability.

That said, isolation is often a common concern for those working from home. One study found that 81% of younger workers said they would feel more isolated solely working from home, while another study found that 60% of workers felt less connected to colleagues.

Further, many workplaces appear to be failing to provide their employees with additional resources to cope with these new challenges. In fact, one study found that under 30% (29%) are doing so. At the same time, around 19% of workers like WFH because it allows them to avoid office politics.

It’s not just work relationships that can be negatively impacted by working from home, though, according to experts, it can also put a strain on home relationships, for example, with a partner. This is often put down to being “physically present” but “unavailable” or due to letting work seep into home life.

Linked with this is the question of work-life balance. Living and working in the same space can make switching off difficult, with a reported 32% of workers finding it difficult to do so. This is especially true for those working in their bedrooms (17%) and living rooms (27%). Working in the former can also be bad for productivity and negatively affect workers’ ability to sleep. According to Hubble research, Gen Z reportedly struggles with this the most.

What are workers’ preferences, and what does the future hold?

So, all things considered, what are workers’ preferences? Do people enjoy WFH, hybrid or office-based working? Well, a wide range of contributing factors affect this, and it appears that age group also has a part to play.

According to Deloitte, 77% of Gen Zs and 71% of Millennials would consider looking for a new job if told they had to return to the office full-time. Meanwhile, another piece of research found that two-thirds (66 per cent) of workers aged over 55 years old prefer hybrid working.

Elsewhere, a study by Hubble found that, interestingly, Gen Z were the most “pro-office” group, while Gen X and Baby Boomers were more “pro-WFH.”

It’s likely that preferences will also depend on whether or not workers have young children; after all, WFH allows much more flexible scheduling (perceived as the main benefit for 50% of workers). Likewise, another factor is how far away a worker lives from their place of work; lack of commute is the secondary draw to WFH for 43% of respondents after flexible scheduling – this comes with big savings, too, a draw for 33% of people.

While the research shows that different groups might prefer different models of working, a key insight from research in this area is that workers like flexibility and the option to choose where and how they work.

Looking ahead, while the likes of Hunt may consider WFH to be detrimental to employees’ performance, it looks like it won’t be going anywhere anytime soon. Moreover, leaked Labour policy documents reveal that the party is even planning to make flexible working a legal right. So, watch this space.

Tags: Economy, hybrid, Working from home, working week