Latest news with #fourDayWeek
Telegraph
06-07-2025
- Business
- Telegraph
A four-day week could be the final nail in our economy's coffin
South Cambridgeshire District Council, after a lengthy trial, is to adopt a permanent four-day (32-hour) week. On Friday it published a report supposedly justifying this. The report claimed that its exciting new way of working had saved the council just under £400,000 in a full year. The savings came from sharply reducing the number of voluntary leavers and attracting 120 per cent more applicants for vacancies. This reduced the need to recruit and train new staff, and to employ agency staff to fill any gaps. Moreover self-reported staff health, wellbeing and motivation are shown to have improved, with 'burnout' – that strange Gen Z affliction unknown until a few minutes ago – being greatly reduced. And scores on 21 out of the council's 24 'Key Performance Indicators' were maintained or improved. So what's not to like? Few of us are against shorter working hours as such. As we have got richer over the last century and a half, the normal working week has halved. It will probably shrink further over the future – as the campaigning Four Day Week Foundation is eager to point out, citing a number of private sector employers already moving in this direction. Nevertheless, a number of things bother me about the South Cambridgeshire claims. One is that the apparently improved productivity may be in part a statistical artefact, a product of the way KPIs are drawn up and measured. For example, 'planning applications completed on time' or 'invoices paid in 30 days' look to be indicators which could easily be gamed. Even if the productivity increase is real, it may be a temporary phenomenon – perhaps a modern example of the early 20th-century 'Hawthorne effect' where observing workers' response to new work arrangements leads to a change in behaviour which dissipates when the practice is normalised and oversight removed. Another concern is that, if it has proved so easy to get five days' work done in four days, there must surely have been plenty of scope for reorganising work within the existing working week. As the TaxPayers' Alliance has pointed out, why could productivity not have been increased without changing the working week, with money saved by cutting the number of employees? This is a national issue, as public sector productivity growth has been abysmal for years. Inadvertently, perhaps, the South Cambridgeshire experiment reveals just how much slack there may be in local authorities. The council makes great play in the report of the trial's 'positive picture' – for the organisation and employees. However not much information is provided about the response of end-users of council services – businesses and local residents. What information there is suggests that significant numbers of users may be dissatisfied over matters such as bin collections, communication difficulties and repairs to tenants' accommodation. The council says that it was going to investigate this further, but they couldn't run a survey because the previous government forbade them to do so. The cost savings to the council, at a time when local government faces severe financial constraints, have been headlined by supporters of the four-day scheme. But these gains probably arise from what economists call 'first mover advantage'. Within commuting distance of South Cambridgeshire District Council are four other district councils plus the upper-tier Cambridgeshire County Council. As South Cambridgeshire, tied to the same national pay scales, is offering a better package, it is not surprising that fewer of its staff want to leave, and that job adverts attract more applicants. But what you can't assume is that if every Fenland council adopts a four-day week, there will be a similar financial gain for all of them. The latecomers would not be offering anything which you couldn't already get in Cambourne. It seems very possible that the shorter week will attract copycats far beyond South Cambridgeshire. Trade unions such as Unison, a long-time supporter of the 4-day week and the organiser of around 30 per cent of local government workers, will press for it to be applied across the sector. The government's Employment Rights Bill makes flexible working the default: any employer resisting a claim for new ways of working will have to have a very strong case that a change will damage its business. If Unison organises a test case in another part of the country where staff demand a shorter working week, they will be able to use the South Cambridgeshire case as evidence for its feasibility. Our soft-centred employment tribunals will probably agree. Nor will this be the only possible knock-on effect. Remember that many workers cannot feasibly increase their productivity much when working shorter hours. Teachers, emergency workers, dentists, ambulance drivers – if they work fewer hours, extra staff would have to be employed to generate the same output, so employers would have a defensible argument against the change. But that doesn't end the matter. For these workers will rightly point out that the South Cambridgeshire arrangement is in effect an increase in hourly pay of between 15 and 20 per cent. If other workers can't be switched on to a shorter week, they'll be demanding whacking great pay increases to compensate. This all looks like another load of trouble at a time when the economy already seems to be heading for the knacker's yard. The touchy-feely crowd at Cambourne Business Park don't know what they're potentially unleashing.
Yahoo
05-07-2025
- Business
- Yahoo
People who work four days a week are actually getting more done, experts say
You're probably reading this at the start of your weekend. But now imagine that weekend had started a day earlier... and did so every week. Sound good? That could be the new reality many companies, and employees, face in the future, after the four-day business week took another step towards implementation in the UK. This year, 17 businesses of different types have been trialling the move, organised by the 4 Day Week Foundation. Almost 1,000 different employees were involved, all retaining their normal salary - and after the culmination of that study, all 17 companies have opted to keep going, following an earlier trial which saw 5,000 people adopt the scheme permanently. Not all are doing straight four-day weeks. Some were trialling nine-day fortnights. And there are clearly some industries which would face challenges to alter schedules and regulations. But the initial results for those taking part appeared positive, with nearly two-thirds (62 per cent) of employees saying they noted a 'reduction in how often they experienced burnout'. Firms who took part in the trial have cited customer satisfaction and employee performance as reasons for continuing, with one expecting mass adoption across the next decade. Vicky Walker, chief people officer at Westfield Health, told The Independent that less work has shown to mean more output. 'Studies have shown that a shorter work week can lead to enhanced efficiency and focus among employees. People may be more motivated to complete their tasks and increase productivity. There's now a growing recognition for flexibility and work-life balance and this trial is a step in the right direction,' Ms Walker said. 'These flexible benefits can also help attract new talent and improve employee retention rates, which for some businesses, is a key business target.' There is, however, much more to consider for employers and the wider economy, before we see it adopted on a larger scale. 'Ultimately, what matters for the economy is hours worked multiplied by productivity per hour. If people are simply working their weekly hours in four days rather than five, then there should be little economic impact. If they are working harder - fewer hours for the same output - then we could see an uptick in productivity, but that wouldn't necessarily translate into growth because of fewer hours,' Thomas Pugh, chief economist at RSM UK, told The Independent. This is essentially the French model of the system, Mr Pugh explained - but success in it will naturally lead to businesses asking one pertinent question: 'If you can be as productive in four days as in five, then why not be as productive over the full five days?' There also remain questions over the potential for staggered days off - 'Do people want Wednesdays off, for example?' - and of course whether a firm's opening hours would still match up to those of their clients. It's not a 'solution to the UK's economic problems', Mr Pugh added. Andrew Timpson, a tax partner at RSM, pointed out there would be implications if reduced hours meant reduced pay - and not just for the Treasury. 'If base pay is reduced, there could be an impact on salary sacrifice and pensions,' he said, 'plus if employees are earning less then the tax take will reduce. Some employees may also find themselves slipping under thresholds which will change the personal allowance, or other aspects such as child benefit.' The discussion outside of finance has also taken centre stage. A study by BHN Extras recently concluded over a third of UK workers (34 per cent) said they would accept a pay cut for a shorter commute and only 23 per cent enjoyed their commute. The survey suggested both the cost and the sentiment was stronger in London, but would knocking a day off the commute into work be a big draw for all? It won't be one for everybody, nor every business. Implementation costs and rescheduling alone may make it prohibitive, while there's no doubt that some management may not appreciate the thought of it, let alone the reality. But just like working from home, hot-desking and zero-hours contracts before it, the four-day week looks set to play some part in the future of UK business - and like all those others, divide plenty of opinion on the way. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
The Independent
05-07-2025
- Business
- The Independent
People who work four days a week are actually getting more done, experts say
You're probably reading this at the start of your weekend. But now imagine that weekend had started a day earlier... and did so every week. Sound good? That could be the new reality many companies, and employees, face in the future, after the four-day business week took another step towards implementation in the UK. This year, 17 businesses of different types have been trialling the move, organised by the 4 Day Week Foundation. Almost 1,000 different employees were involved, all retaining their normal salary - and after the culmination of that study, all 17 companies have opted to keep going, following an earlier trial which saw 5,000 people adopt the scheme permanently. Not all are doing straight four-day weeks. Some were trialling nine-day fortnights. And there are clearly some industries which would face challenges to alter schedules and regulations. But the initial results for those taking part appeared positive, with nearly two-thirds (62 per cent) of employees saying they noted a 'reduction in how often they experienced burnout'. Firms who took part in the trial have cited customer satisfaction and employee performance as reasons for continuing, with one expecting mass adoption across the next decade. Vicky Walker, chief people officer at Westfield Health, told The Independent that less work has shown to mean more output. 'Studies have shown that a shorter work week can lead to enhanced efficiency and focus among employees. People may be more motivated to complete their tasks and increase productivity. There's now a growing recognition for flexibility and work-life balance and this trial is a step in the right direction,' Ms Walker said. 'These flexible benefits can also help attract new talent and improve employee retention rates, which for some businesses, is a key business target.' There is, however, much more to consider for employers and the wider economy, before we see it adopted on a larger scale. 'Ultimately, what matters for the economy is hours worked multiplied by productivity per hour. If people are simply working their weekly hours in four days rather than five, then there should be little economic impact. If they are working harder - fewer hours for the same output - then we could see an uptick in productivity, but that wouldn't necessarily translate into growth because of fewer hours,' Thomas Pugh, chief economist at RSM UK, told The Independent. This is essentially the French model of the system, Mr Pugh explained - but success in it will naturally lead to businesses asking one pertinent question: 'If you can be as productive in four days as in five, then why not be as productive over the full five days?' There also remain questions over the potential for staggered days off - 'Do people want Wednesdays off, for example?' - and of course whether a firm's opening hours would still match up to those of their clients. It's not a 'solution to the UK's economic problems', Mr Pugh added. Andrew Timpson, a tax partner at RSM, pointed out there would be implications if reduced hours meant reduced pay - and not just for the Treasury. 'If base pay is reduced, there could be an impact on salary sacrifice and pensions,' he said, 'plus if employees are earning less then the tax take will reduce. Some employees may also find themselves slipping under thresholds which will change the personal allowance, or other aspects such as child benefit.' The discussion outside of finance has also taken centre stage. A study by BHN Extras recently concluded over a third of UK workers (34 per cent) said they would accept a pay cut for a shorter commute and only 23 per cent enjoyed their commute. The survey suggested both the cost and the sentiment was stronger in London, but would knocking a day off the commute into work be a big draw for all? It won't be one for everybody, nor every business. Implementation costs and rescheduling alone may make it prohibitive, while there's no doubt that some management may not appreciate the thought of it, let alone the reality. But just like working from home, hot-desking and zero-hours contracts before it, the four-day week looks set to play some part in the future of UK business - and like all those others, divide plenty of opinion on the way.
Daily Mail
05-07-2025
- Politics
- Daily Mail
Council to make four-day week permanent for staff despite fury from locals who claim services have plummeted
A four day working week is set to become permanent at a Lib Dem-run council despite complaints from residents. South Cambridgeshire district council carried out a two-year pilot to test the controversial plan and concluded it saved money without harming services. Three universities monitored services during the first 27 months of the trial and said that nine out of 24 council services improved, 12 remained stable and three declined. But a resident survey found only 45 per cent supported it and said refuse collection, council tax services and the customer contact centre had all become worse in that time. The consultation response found that of the 13 services measured, nine got worse while four stayed the same, according to those who live in the area. Those to suffer included bin collections, the communications service, licensing matters and environmental health. A business survey found that of the ten services measured, one got worse, four stayed the same and five recorded no result. No increases in satisfaction for services were recorded. Elliot Keck of the Taxpayers' Alliance said the results were 'devastating' and the response of residents had been 'brutal'. 'South Cambridgeshire council has nowhere to hide after this bruising consultation completely collapses its case for the four day week,' he said. 'Wheeling out yet another piece of propaganda masquerading as an independent report will fool no one, given the overwhelmingly negative response from residents and frosty reception from businesses. 'Town hall bosses need to now face the music, apologise to local taxpayers and bring back the full-time council.' Mr Keck criticised the 'supposedly independent' report compiled by the three universities after a previous report was found to have been edited by the council's chief executive. Heather Williams, leader of the Conservative opposition, said the new report actually showed that resident satisfaction had fallen in every area since the trial began. 'This reaffirmed my view that this is not something we should be doing at the council. It's incredibly unfair that council tax is going up year after year,' she told the Mail. 'Now it's going up to fund council officers not to work a full week. Residents aren't council - we are legally bound to pay our council tax. 'This has to stop. Residents have had their say and we have to take what they say seriously.' In 2023, the council became the first local authority to trial staff working 80per cent of their contracted hours for full pay as long as they maintained full productivity. South Cambridgeshire has said it expects to save about £400,000 annually due to through lower staff turnover and relying less on agency workers. It also reported a 120per cent increase in job applications and a 40per cent fall in staff turnover and said initial indications were positive. A vote to make the move permanent is expected to pass on July 17 with fears more councils could follow suit. It comes at a time when other public sector workers are under increasing pressure and council tax bills soar. In 2023 it emerged that Liz Watts, the council's chief executive, had helped to edit a supposedly independent report on the scheme. It also emerged that she had been working on her PhD during the four-day week. Len Shackleton, a research fellow at the Institute of Economic Affairs, a free market think tank, told the Times there were 'clearly benefits' if staff were happier and stayed in their jobs. But he also questioned whether this was due to workers improving because they know they are under scrutiny. And he warned that rolling out the policy more broadly may also have an inflationary effect as workers in sectors where a four-day week is impossible may demand pay rises to compensate. 'If it works for South Cambridgeshire, good for them. But if this is used as a template for every council across the country, you might run into problems,' he added. Defending the policy, council leader Ms Smith said South Cambridgeshire was 'now offering more stable services, with improved wellbeing and performance'. She added: 'At a time when national satisfaction with councils is falling, our data shows we're bucking that trend.'
Times
04-07-2025
- Politics
- Times
Four-day week for council workers sets a disastrous example
South Cambridgeshire District Council insists that the four-day week trial has been a great success CHRIS RADBURN FOR THE TIMES Paying people to work less for the same salary is, not surprisingly, popular. South Cambridgeshire District Council, which since 2023 has given staff the option of working a four-day week, insists that the trial has been a great success: staff turnover has gone down and job applications are up. So pleased is the authority's Liberal Democrat leader with the trial, which she claims has saved £400,000 a year, that she proposes to make the arrangement permanent. The Conservative opposition is appalled. The results, it says, have been manipulated, key council services have suffered and voters are outraged. Little wonder. The experiment, which mirrors trials put in place by several private companies after the Covid pandemic, is based on a wholly misleading premise: that employees will be so motivated by the promise of extra leisure that they will work with increased intensity and efficiency, accomplishing in four days what was previously done in five. That may hold true for a few weeks or even years. But if such efficiencies can be achieved, why can the same savings and improvements not also be made during a five-day week? And will employees keep up the intensive pace or slip back to the normal routines of most jobs? Carrying out some tasks in less time may indeed become easier with the use of robots and artificial intelligence. But that could take years to percolate down to daily administration. What of bin collections or manning consumer contact centres — already one of the most infuriatingly neglected aspects of councils, where replacing humans with voice recordings defeats the whole purpose? Surveys of the Cambridgeshire experiment found plenty of consumer dissatisfaction in these areas as well as a dip in rent collection, delays in re-letting housing and lower tenant satisfaction. • First council set to adopt permanent four-day week Well-meaning proposals for a better work-life balance, or attempts to solve unemployment by cutting overtime, have usually foundered. France limited employment to 35 hours a week; it turned out to be a disastrous flop. Jobs could not be finished, overtime was not allowed and everyone complained. The law was watered down. But while flexible working time and especially provision for part-time jobs to bring more people into the workforce are sensible, the argument that a shorter working week will lead to greater productivity seems perverse. It is also hardly the example needed at a time when Britain is desperately attempting to raise its poor and uncompetitive productivity level. A few jobs can be accomplished in short bursts of intense activity; most cannot. If the South Cambridgeshire model is used as a template across the country, workers in other sectors where a four-day week is impossible will demand compensation. Any rise in job satisfaction is welcome and economically helpful, as is job retention. But Germany, where Friday is now virtually written off as a working day, has seen a major slide in productivity. No local authority in Britain and certainly not the entire nation can afford that now.
