Steady decline in businesses using homeworking

The future of homeworking continues to generate debate and uncertainty. While some businesses push for a full return to the office, many employees are resisting, prompting ongoing revisions to workplace policies across industries. The UK Employment Rights Bill, currently going through Parliament, may give more protections for employees wanting flexible working conditions. 

Recent data from the Office for National Statistics (ONS) highlights the steady decline in homeworking use and intention to use since November 2021, during Covid-19. Their tracking data shows this is the case for both larger businesses (employing more than 250 people) and all businesses, including smaller organisations (although not micros of 1-9 employees). 

The ONS Business Insights and Conditions Survey (BICS) tracking study asks UK businesses ‘Is your business using, or intending to use increased home working as a permanent business model going forward?’. Responses from 10,478 businesses (excluding financial services and government) demonstrate that:
• As of May 2025, 23.5% of large businesses (250+ employees) said “Yes” to adopting long-term homeworking—more than double the 11.2% of all businesses with over 10 employees.
• This is part of a continuing trend: since late 2020, large businesses have consistently been more likely to commit to remote work.

Large sector differences

Certain industries remain more likely to adopt homeworking—regardless of business size. These include:
• Information and Communication
• Professional, Scientific and Technical Activities
• Administrative and support service activities

These sectors do not have a higher share of large businesses, suggesting that the nature of work itself may influence homeworking uptake more than business size.

Why are larger businesses more likely to embrace homeworking?

The ONS data reveals that large businesses are more likely to adopt long-term homeworking, but they’re also more aware of its challenges.

Among businesses with 250+ employees:
• 24.7% still say that remote work negatively impacts working culture, compared to 20.0% across all business sizes
• 20.1% report concerns about integrating new starters, and 17.8% flag reduced communication as an issue.

Yet, large businesses are continuing with homeworking more than smaller firms. Why? Because they’re also the most likely to cite improved wellbeing (78.9%), wider access to talent in the UK (55.9%), and increased productivity (44.9%) as key benefits. For these employers, the upsides are seen as worth the additional investment in onboarding, collaboration tools, and management practices.

Large businesses can afford the culture costs?

Larger organisations may be more likely to address cultural issues associated with homeworking head-on—through hybrid models, better communication tools, and targeted in-office days designed around employee connection and collaboration.

In short, large businesses don’t see homeworking through rose-tinted glasses as its decline in popularity shows. They recognise its challenges – particularly around culture, communication, and onboarding. The difference lies in their resources, experience, and infrastructure, which allow them to take a more flexible, long-term view.

Davies Hickman Partners has been completing research into new ways of working for many years. Indeed over the past 5 years, we have researched a variety of employee engagement, technology, HR, customer focused strategies to accommodate home working.