Mandatory Flexible Working Is A Stealth Tax On Jobs And Wages, Warns New IEA Report
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Image by Markus Winkler from Pixabay
Governments are constantly tempted to push flexible working because it allows them to support a popular social change without having to pay for it themselves. The new, stronger “right to request” flexible working in the Employment Rights Act will be much harder for managers to resist, and even dealing with such requests will impose costs on companies. While private businesses may be able to control some of these costs, the widespread strengthening of flexible working rights is likely to damage productivity, slow growth, and undermine wages and employment. This will be all the more true if unions or workplace rules stop wages adjusting, for example to reflect whether particular jobs can in practice be done remotely. This is likely to be a particular problem in the public sector, reinforcing its existing poor productivity record.
P.ublished 6th February 2026