Government Confirms Commitment to Remote and Hybrid Working in the Wake of Planned Changes to the Flexible Working Regime

The Government has recently published its response to the House of Lords Select Committee Inquiry on Home‑based Working. The document signals clear long‑term support for remote and hybrid work as part of a broader push to expand flexible working options. In 2027, employers will see changes to legislation and guidance under the Employment Rights Act 2025 (the Act).

Key Points at a Glance

• The UK government has confirmed long-term support for remote and hybrid working in its response to the House of Lords Inquiry on Home-based Working.
• Major changes to come into effect in 2027 under the Employment Rights Act 2025.
• This will strengthen the right to request flexible, remote and hybrid working.
• Employers will only be able to refuse these requests if reasonable to do so, with ACAS set to update its Code of Practice.
• Employers should act now by reviewing policies, training managers and assessing digital and wellbeing readiness.

What does the Government’s response to the inquiry on home-based working mean for employers?

1. The Government’s stance: flexibility is here to stay

The Government states that hybrid and home‑based working continue to deliver value for employers and employees, recognising the role that flexibility plays in supporting work–life balance and workforce participation. It also emphasises that flexible working is a key change under the Act.

For employers, this signals a sustained policy environment that actively supports flexible working, including remote and hybrid working, in addition to other forms of flexible working, such as part-time work, flexitime, compressed hours and job sharing.

2. A strengthened right to request flexible working

In 2027, the Government will introduce a requirement that employers may only refuse flexible working requests — including for remote and hybrid arrangements — where it is reasonable to do so. Employers must explain their reasoning with reference to one or more business grounds, which are already well established.

The Government has also confirmed that ACAS will update its statutory Code of Practice to provide guidance on what “reasonable” means in practice.

3. Employers must engage constructively to explore flexibility

While the Government will not mandate specific home‑working arrangements, it expects employers to engage creatively with staff to explore feasible flexibility.

This includes:

• Considering alternative forms of flexibility where remote work is not possible.
• Ensuring line managers are equipped for collaborative discussions about working patterns.

4. Guidance and support for employers

The Government recognises that employers need clearer guidance on managing hybrid teams and complying with health and safety duties. It has committed to providing new and updated guidance before the 2027 reforms take effect, including:

• Expanded employer guidance and resources on flexible, remote and hybrid working.
• Campaigns promoting the Health and Safety Executive’s home‑working guidance.
• How it can support management training needs.

5. Disability inclusion

The Government explicitly affirms that home‑based working is often an effective and low‑cost adjustment that enables disabled people to access and stay in work.

The Access to Work scheme will continue to fund:

• Assistive equipment for home environments
• Support workers (including for self‑employed home‑workers)
• Mental health support

6. Cyber security: remote work expands the threat perimeter

The National Cyber Security Centre’s (NCSC) home working guidance is central to the Government’s approach to cyber security and home working. It identifies each employee’s home network as being part of an organisation’s security environment.

Employers should ensure:

• Clear remote‑working IT policies
• Staff training on cyber hygiene
• Use of the NCSC’s Cyber Action Toolkit

What UK Employers Should Do

The Government is currently consulting on the upcoming changes to flexible working under the Act, including seeking evidence about current approaches to handling flexible working requests to help shape guidance and resources. The consultation will close on 29 April 2026.

Changes to Make Now

Employers can prepare for the new approach to flexible working arrangements by:

• Training line managers to manage hybrid teams and assess and support remote worker wellbeing.
• Strengthening remote health and safety practices by implementing remote risk assessments, ergonomics guidance, and mental health support.
• Reviewing digital and cybersecurity readiness by aligning practices with the NCSC guidance; ensuring staff training and secure remote‑working policies are up to date.
• Ensuring disability inclusion practices use home‑working effectively.
• Maximising Access to Work support and reviewing reasonable adjustments processes.
• Monitoring updates as the 2027 reforms approach.

Changes to Make as We Approach 2027

As we approach the changes to flexible working in 2027, employers will need to:

• Review and update flexible working policies
• Train line managers to handle flexible working requests under the new regime

Looking ahead to flexible working changes in 2027

The Government’s response makes it clear that remote and hybrid working is here to stay. With strengthened rights to request flexibility and expanded guidance expected in 2027, employers will need to engage positively with flexible working, rather than resist it.

By updating policies, training managers, and ensuring robust digital and wellbeing practices, organisations can meet evolving expectations and benefit from wider talent pools, improved retention and a more adaptable workforce.