Remote Work Fails to Bridge Regional Divide, Study Finds

Flexible working benefits remain concentrated in London and the southeast, researchers say.

The City of London financial district can be seen as people walk along the south side of the River Thames, in London, on March 19, 2021. Henry Nicholls/Reuters

Working from home has not led to a more equal spread of jobs or skills across the UK, new research suggests.

Despite promises by the previous Conservative government to “level up” the UK and the new Labour leadership’s Plan for Change, the distribution of high-skilled workers remains heavily skewed towards London, the southeast, and other urban centres.

A report by academics from the University of Southampton and the University of St. Andrews cast doubt on the ability of remote work alone to tackle long-standing regional disparities.

Professor Jackie Wahba, one of the study’s authors, said: “It was widely believed that working from home would let high-skilled workers move further from their employers, opening up opportunities for less wealthy areas. But so far, it remains most common among higher earners in a few sectors, mostly near London and other major cities.”

Same Cities, New Commutes

Before the COVID-19 pandemic, most people who worked from home were based in London and the southeast. That hasn’t changed much, even though remote and hybrid work have become more common.

Scotland has seen a notable rise, but overall, London still leads in jobs that can be done from home.

The report found that three types of places have become working-from-home “hotspots” since the pandemic: areas with office-style jobs, places with good transport and cheaper housing, and scenic rural spots.

But instead of boosting smaller towns or remote regions, the shift has led to a “donut effect” in which people are leaving city centres for suburbs and commuter towns, hollowing out inner cities but still staying near job hubs.

While people are commuting less often, they’re often travelling further when they do, meaning they still need to live near large cities. Long-distance commuting has replaced full relocation.

“Geography still matters,” the report said, warning that digital connectivity alone cannot substitute for the economic and social gravity of major cities.

Government Aims to Spread Jobs

The day before the study was published, the government announced plans to move thousands of civil service jobs out of London.

Labour’s Rewire the State programme will shift 12,000 roles to cities like Manchester, Aberdeen, Birmingham, and Glasgow by 2030.

Half of all senior civil servants will be based outside the capital, and new hubs focused on digital, AI, and energy will open.

“By relocating thousands of Civil Service roles we will not only save taxpayers money, we will make this Government one that better reflects the country it serves,” said Cabinet Office minister Pat McFadden in a statement.

The previous Conservative government’s Levelling Up agenda also aimed to spread opportunity more equally across the UK.

But a report by the Public Accounts Committee last year found that only a small part of the policy funding had actually been spent. Out of £10.47 billion promised between 2020 and 2026, councils had only spent £1.24 billion by September 2023.

By the end of 2023, just £3.7 billion had been handed out to councils by the government. This raised concerns that the money was not reaching communities fast enough or making a real difference.

Meanwhile, Reform UK—following local election gains—has called for a rollback of remote work.

The party is pushing for mandatory office attendance for civil servants, an end to remote work subsidies, and incentives for companies to revive in-person workforces.

Deputy leader Richard Tice argued that working from home leads to falls in productivity.

“To make Britain work, we must make work pay. If it pays more to stay at home, don’t be surprised what happens,” he said.

Remote Work Not a Quick Fix

Although many people now work from home at least some of the time, fully remote jobs are still rare, researchers found. Hybrid work is more common, especially for skilled professionals.

The study found little proof that this is helping to rebalance the economy. In fact, it may be making things worse.

The study also found that people working from home move house less than those who don’t. And when they do move, it’s usually to save money on housing, not for work.

Researchers said that decisions about remote work should be based on strong evidence. Although interest in remote and hybrid work is growing, current data are limited and many important trends are still unclear.

The study recommended better data collection to track where people are moving, how easy it is to find jobs, and how hybrid work is affecting communities, especially in less wealthy parts of the UK.

Ultimately, while flexible working is here to stay, the study warned that it is no silver bullet for fixing the UK’s deep-rooted regional divides.

PA Media contributed to this report.