While many predicted that 2024’s £2 bus fare cap would be completely done away with at Chancellor Reeves’ first Autumn budget, the reality was almost the opposite. Last week Wednesday, a price cap increase of £1 went into effect, changing the cap from £2 to £3.
This change has been met with mixed responses, with some asserting that the cap has been successful up until this point and others raising concerns over affordability for lower-income commuters.
It’s worth noting, however, that while the national cap has increased, local authorities still have the power to impose slightly lower caps. But, to do this, they need to be able to subsidise the discount themselves which can be a challenge, especially in more rural areas.
Also, this cap pertains specifically to single-journey bus fares, so commuters still have the opportunity to save money by purchasing season tickets.
How Will Rising Transport Costs Affect Employees?
One of the first questions that arises in the wake of the imposition of this increase is how it’ll affect ordinary people – that is, employees who are regularly and consistently commuting to and from work. Even though not everyone will necessarily be hit hard by a massive increase in ticket prices, some people certainly will be affected by this raised price cap.
For many, having to increase transport budgets will surely prove to be a disadvantage, with higher ticket prices eating into monthly expenditure. And, since work environments have changed pretty significantly since 2020 and international lockdowns that were imposed due to Covid-19, it begs the question – does this mean more companies will need to consider getting on board with the hybridisation of work in more of a long-term sense?
Of course, plenty of businesses have already accepted this change and have imposed new policies for employees, allowing them to work both from home and from the office, to varying degrees. However, other companies have been a bit more rigid, with some reverting to pre-Covid-19 work protocols, requiring employees to be in the office.
In many cases, this is completely reasonable, especially for companies and employees that actually need to be on site to be able to do what they need to do. But, in a lot of situations, employees who are fully capable of working from home (or even just out of office) are still being forced to travel to and from work.
This may be because employers are just a bit more “old school”, and it may also be because they want to be able to keep an eye on staff. Whatever the reason, the hybrid work situation issue has become a proper point of contention for many people over the last few years, and many unhappy parties have started to feel like they’ve reached a stalemate.
However, this increased bus fare cap in England may be the change that was necessary to shake things up a bit again. Indeed, it may force employers to seriously consider whether or not it’s reasonable to require employees to spend extra money on commuting when they don’t actually need to be in office – or, at least, don’t need to be there every day.
Part of this contemplation will most likely involve questions about who should absorb the increased costs if employees are still to have to go into the office – will the company compensate for higher transport prices or will employees be expected to cover the raise themselves?
The issue is a complicated one and the way in which businesses and employers respond will be completely dependent on a broad range of factors and sensitive variables. That includes things like how large the business is, what employees’ responsibilities include, how far they’re travelling, individual employee performance and so much more.
Experts Share Their Thoughts
While they may have been popularised over the last few years and have been incredibly successful in plenty of businesses and professional environments, there’s no doubt about the fact that the discussion surrounding the efficacy and reality of hybrid work models is a contentious one.
We spoke to a group of experts to get their opinions on the situation more generally and to find out what they think about how companies should (and potentially will) react to employees wanting to adopt a hybrid work arrangement.
Our Experts
- Aman Parmar: Head of MarketingatBizSpace.co.uk
- Guy Thornton: Founder of Practice Aptitude Tests
- Barbara Matthews: Chief People Officer at Remote
- Frank Weishaupt: CEO at Owl Labs
- Jessica Brannigan: Head of Enterprise People Science, EMEA, at Culture Am
Aman Parmar, Head of MarketingatBizSpace.co.uk
“Hybrid work models that provide solutions such as desk sharing and work-from-home days offer financial incentives to both employees and businesses.
Many offices are now incorporating adaptable layouts and technology to support hybrid work. Features like hot-desking, movable partitions, and multi-functional spaces allow seamless transitions between in-person and virtual collaboration.
Modern offices also integrate advanced tools such as virtual reality rooms, IoT-enabled devices, and collaborative tech hubs to cater to a digitally connected workforce.
Companies looking to transition to a hybrid setup need to consider:
– Implementing hybrid work policies and updating existing HR documentation
– Updating the tools and technology required for remote working
– Adapting/redesigning workspaces to allow for new working conditions
– Investing in activities to retain and build a company culture as the hybrid setup may have a negative impact on this
– Investing in leadership and management training to help support the transition to hybrid working and empower individuals to better support staff in a remote environment
– Ensuring all the relevant legal and compliance measures have been considered and amended accordingly
Flexible workspaces now also often feature more employee-centric amenities like barista-style reception areas, social hubs, and quiet zones. These designs foster community, creativity and individual focus, aiming to make workplaces more engaging and supportive for those in a hybrid setup.”
Guy Thornton, Founder of Practice Aptitude Tests
“Work-from-home setups took off during the pandemic and quickly became a standard feature of modern workplaces.
However, in the years since, many employers have rolled back their WFH policies, largely due to concerns about productivity.
Without direct supervision, some managers worry about whether their employees are genuinely engaged or just wiggling their mouse.
Now, with public transport costs rising, this debate has a new angle. Employers are being urged to rethink their policies to offer more financial relief to their teams.
With the cost-of-living crisis continuing to wreak havoc and necessities like food and energy bills remaining high, many employees are looking for ways to make ends meet. It’s only natural for them to seek support from their employers.
The pros and cons of remote working:
Like anything, remote working has its ups and downs.
For employees, the most obvious benefit is saving money on commuting. But it’s not just about finances.
A recent study found that fully remote workers were 20% happier than those tied to the office. Happier employees tend to work better—they’re more productive, more engaged, and they deliver higher-quality results.
On the other hand, there’s a lot to be said for the benefits of office life. Being in the same space makes it easier to share ideas, get instant feedback, and collaborate more effectively.
Offices also foster a sense of community and culture that’s hard to replicate remotely, offering chances to build friendships, develop professionally, and participate in team-building. In-person connections can make all the difference in roles requiring mentoring or knowledge sharing.
The importance of striking the right balance
“Determining whether everyone should return to work is not a simple question. It largely depends on the industry.
Take tech and marketing, for example. These fields often thrive in remote settings, where employees can focus on creative, independent work without office distractions.
By contrast, industries like healthcare, manufacturing, and retail rely heavily on in-person collaboration, so being physically present is often a must.
Employers need to take a good look at their teams, goals, and what their workforce values. Hybrid working models could strike the ideal balance, combining the flexibility of remote work with the advantages of in-person collaboration.”
Barbara Matthews, Chief People Officer at Remote
“Flexible workplaces that allow for remote and hybrid working can deliver large benefits, not just for employees but also for employers. For employees, providing the freedom to live where they prefer, rather than being tied to their job’s location, and reclaiming the time otherwise spent commuting, creates a more balanced and fulfilling lifestyle.
According to the Remote Workforce Report 2024, which surveyed remote workers and employers globally, 40% of companies said it increased employee satisfaction, and 40% highlighted remote work as being crucial to an enhanced life-work balance for employees. Remote work also drives tangible business benefits, with the same workforce report highlighting that 38% of respondents report an increase in productivity and 32% an improvement in overall business performance as key advantages of remote operations.
The bottom line is that flexibility around remote work can help foster a workforce that is ultimately happier than one that feels compelled to be physically present in the office. A happier and more cohesive workforce will ultimately lead to higher productivity and, in turn, generate better results for businesses.”
Frank Weishaupt, CEO at Owl Labs
“A clear hybrid work policy that offers greater flexibility, based on an employee’s daily task list, promotes a more engaged and productive workforce as employees feel empowered to manage their own schedules. Our data also suggests that hybrid work can lead to healthier teams. As it stands, 67% of UK workers would spend more time focused on fitness and health if they weren’t commuting.
By leveraging advanced collaborative technology now, teams are able to remain connected irrespective of working hours or location. This investment in technology lays the foundation for driving a dynamic and productive organisation in the future.”
Jessica Brannigan, Head of Enterprise People Science, EMEA, at Culture Am
“The inescapable truth is that today’s employees don’t want to be coerced over their role and working conditions.
Employers cannot win if they go to extremes: if they give their people complete flexibility over their place of work, they find that workers that go back in often find their old office empty and uninspiring. On the other hand, employers mandating fixed days back in the office will undermine employee trust, engagement and productivity. Intelligent choice is the optimal route to enhancing employees’ overall engagement and performance.
Coercion is also doomed to fail because so many employers went the distance to engage and support employees during the pandemic, many others have shown a lack of empathy, particularly over the inflation issues that emerged so rapidly in 2022.
In particular, company leaders did not put extra resources into fully understanding and accommodating employees’ cost of living issues – and as commuting and child costs have inexorably crept up, hybrid work has become a necessity to help employees make ends meet. By adopting a hybrid work situation, employees have, in effect, taken the pay rise they were never given by their employer.”
