UK public sector shifts to office work, raising staff concerns

A new study by Unit4 highlights a major reduction in remote and hybrid working models across the UK public sector, with implications for recruitment and staff retention.

The 2025 State of Digital report, which surveyed 100 UK public sector decision makers among a global panel of 400, found a significant shift towards office-based work compared to previous years. According to the report, 51% of UK public sector organisations are now fully office-based, a stark increase from 7% in 2023. Only 15% of organisations continue to operate a fully remote working model, down from 37% two years ago. The proportion of those offering any form of hybrid work fell to 49% from 93% in 2023.

Recruitment challenges

The move back to office-based work appears motivated by a desire to foster collaboration, reduce workplace costs, and address security concerns linked to sensitive data. However, the report indicates that these policies may be adversely affecting the ability of public sector employers to attract and retain qualified staff.

Some 24% of UK respondents report they are struggling to recruit due to return-to-office or working location mandates - a situation mirrored globally and even more pronounced in Sweden, where the figure stands at 27%. The ability to recruit employees with the right skills also declined, with only 35% of UK respondents saying they could do so in 2025 compared to 41% in 2023. This trend is at odds with international findings, where the percentage of respondents able to find the right skills improved from 36% in 2023 to 41% in 2025.

The report also notes a decrease in the ability to recruit from a wider geographic area, which had been a key benefit of remote and hybrid models. Only 23% of UK respondents cited this policy enabled wider recruitment in 2025, down from 43% two years earlier. Additionally, the retention of skilled workers is proving more difficult: 17% admitted it had become harder to retain skilled staff, up from 13% in 2023. In the Netherlands, this figure jumped from 17% in 2023 to 25% in 2025.

"The people aspect of digital transformation should never be under-estimated, so Public Sector decision-makers ought to think carefully before they go too far back down the path of mandating office-based work," said Mark Gibbison, AVP Global Public Sector and Higher Education, Unit4. "The continued support among workers for remote and hybrid working cannot be ignored. If the Public Sector wants to attract the best candidates it must be willing to adapt or find alternative solutions, such as increasing automation and use of AI to support the existing workforce to do their jobs."

International context

The UK findings are in line with trends observed internationally. Across all surveyed countries, only 16% of respondents reported operating a fully remote model in 2025, compared with 33% in 2023. The prevalence of hybrid models also declined, with 33% continuing to offer some degree of flexibility, compared to 53% in 2023. The proportion of respondents saying their organisations are now fully office-based reached 51% globally, up from 13% two years ago. Within these figures, the Netherlands reported the highest concentration of office-based work at 63%.

In Canada, while the number of organisations offering remote or hybrid models has decreased compared to 2023 (89%), the majority (66%) still provide these options in 2025. Combined data from Sweden, the Netherlands, and Canada reveals that 41% of those not fully office-based plan to transition to this approach within the next two years.

Skills and retention

There are some positive shifts in recruitment challenges, with fewer UK organisations indicating difficulty in hiring staff with the appropriate skills. Only 15% considered this an issue in 2025, a considerable improvement from 27% in 2023. Additionally, just 11% said they could not find the right recruits in 2025, down from 27% two years earlier. The ability to recruit individuals with greater or more technical expertise saw a major increase, from just 3% agreeing in 2023 to 38% in 2025.

Still, the pressure to return to the office could have longer-term impacts. According to a separate study conducted in May by the Global Institute for Women's Leadership at King's College London and King's Business School, 58% of workers would consider quitting or seeking new employment if asked to return to full-time office work. The effect is more pronounced among women, of whom 64% say they would resist such mandates, compared to 51% of men. Among mothers with young children, only one in three would agree to return fully on-site.

The Unit4 report finds that 74% of UK respondents expect to complete their digital change strategies within two years, up from 49% previously. This acceleration in transformation initiatives, combined with the reduced flexibility in working arrangements, means public sector organisations may need to rethink their approach to work in order to attract and keep staff during periods of substantial change.

The survey covered a range of roles and institutions, with UK respondents drawn from finance, IT, HR, compliance, audit, and governance functions across central government, healthcare, and non-departmental government bodies.