Jessica O'ConnorRemote work has become a permanent feature of the UK labour market, with up to 44% of adults now working from home in some capacity, according to MyPerfectCV’s (MPCV’s) Remote Work 2025 report.
The findings highlighted the UK’s position as one of the world’s most flexible workforces and revealed how hybrid patterns are reshaping productivity, pay and well-being.
Before the pandemic, fewer than one in eight employees worked remotely on a regular basis.
Today, 14% work entirely from home and 26% to 28% follow a hybrid model.
According to the report, UK employees now average 1.8 remote workdays per week – the highest in Europe and second globally behind Canada.
The research identified widening disparities in access to flexibility.
High earners, degree-holders and London-based professionals benefitted most, with hybrid work common in office-based sectors such as tech and finance.
In contrast, industries tied to physical workplaces, including hospitality, transport and healthcare, continued to see limited remote options.
Productivity perceptions remain mixed. While 62% to 67% of remote workers said they perform better at home, only 39% of employers agreed.
The report cited a potential 10.5% productivity lift when remote work is well structured, though this can be offset by poorly managed home environments and a 7.4% increase in meetings.
Remote work is also shifting regional economic patterns.
The Centre for Economics and Business Research has estimated that London’s GDP is overstated by £8bn as more output now comes from suburban and regional locations.
Around £3bn in retail and hospitality spending has moved from city centres to commuter towns, with the South East and East of England gaining approximately £7bn in combined activity.
Despite expectations that remote work would support “levelling up”, the report suggested the opposite: hybrid models still require proximity to major cities, reinforcing advantages for already prosperous regions.
Financial impacts on workers were mixed. While employees can save up to £2,400 annually on commuting, 86% report higher household costs, averaging £47 per week in additional utilities and broadband.
Well-being indicators were similarly divided: 78% said work-life balance has improved and 65% reported higher satisfaction, yet 80% said blurred boundaries have affected mental health.
Between 18% and 39% experience physical issues linked to inadequate home workspaces.
Concerns about fairness were emerging as hybrid patterns become increasingly entrenched.
94% of business leaders noticed in-office employees more often, contributing to a “proximity bias” that leaves hybrid workers 7% to 8% less likely to receive promotions or pay rises without clear performance metrics.
The research also revisited outcomes from the UK’s 2022 four-day week pilot, where 92% of participating organisations retained the shorter week.
Companies recorded a 35% rise in revenue, a 57% fall in turnover and a 65% drop in sickness absence, with strong gains in employee well-being.
Looking ahead, the report described structured hybrid work as the most stable long-term model.
Most UK CEOs (74%) said a full return to the office is not a priority, and up to 48% of employees said they would consider leaving if compelled to return five days a week.
A two-to-three-day office pattern is identified as the most sustainable approach.
Jasmine Escalera, career expert at MPCV, said: “Remote work is the new foundation of the modern economy.
“The data shows flexibility can fuel productivity and well-being, but only when managed intentionally.
“The next frontier isn’t about where people work, it’s about how leaders ensure equity, connection, and growth in a distributed world.”
