Aurelia Butler

Health unions and the government remained deadlocked in their dispute over NHS workers’ demands for higher pay after ministers made clear they would not reopen the wage settlement in England for 2022-23.As up to 40,000 nurses and ambulance workers in England and Wales walked out on the biggest day of strike action in the health service’s history, health minister Maria Caulfield said “above-inflation pay rises” would fuel the problem of rising prices.Rishi Sunak, the prime minister, is contending with the biggest wave of strikes in the public and private sectors in decades, with workers pushing for higher pay amid the cost of living crisis.But after ministers made conciliatory noises to health unions in January, hinting they might reopen the pay settlement for NHS workers in England for the current financial year, they have since hardened their position.The idea of a £1,000 one-off payment for NHS staff, floated by health secretary Steve Barclay, was blocked by the Treasury. Downing Street did not deny that ministers had not held any serious talks with health unions in recent weeks.Challenged on whether the government would be willing to the reopen the pay settlement for NHS staff in 2022-23, Caulfield raised the issue of constraints posed by affordability.“The secretary of state [for health] and the PM have been clear that that would be extremely difficult to do because it wouldn’t just be for nurses . . . There are a range of public sector workers who would also want the same request and across the board you are talking about billions of pounds to pay for that,” she said.The government has instead pressed unions to engage in discussions about evidence to be submitted to independent review bodies about the pay awards for NHS staff in 2023-24.But Sara Gorton, head of health for the union Unison, said NHS workers were on strike to improve pay and staffing in 2022-23. “Talking about the wage rise they’re due in April won’t end the dispute,” she added.The GMB union indicated it was willing to meet Barclay for talks, but only if the pay settlement for 2022-23 was on the table.Pat Cullen, Royal College of Nursing general secretary, accused the UK government of “punishing England’s nurses”, when the Welsh and Scottish administrations had been willing to negotiate on pay for the current financial year. She urged Sunak to “negotiate and halt this action now”.The Welsh government’s offer on Friday of improved pay for NHS workers in Wales for 2022-23 prompted the RCN and the GMB, which represents ambulance workers, to call off strikes scheduled for Monday in the principality. Unite, another union representing ambulance workers, proceeded with walkouts.Sunak’s reluctance to give ground to the health unions risks costing him politically: a YouGov survey at the end of January suggested about two-thirds of the public still supported strikes by NHS workers. In confirmation that the NHS strikes pose a particular problem for ministers, the same YouGov poll found more people opposed than supported strikes in other sectors, including rail.NHS insiders said the mood seemed to be hardening among ministers and unions.The NHS Confederation, which represents organisations across the sector, warned the health service’s ability to meet a government target to ensure that by the start of April all patients waiting 18 months or more for non-emergency surgery would have been treated, was now hanging in the balance because of strikes. More

Today’s top storiesTurkey was hit by a second earthquake after more than 1,900 were killed by the biggest tremor in 80 years, causing destruction across the country and in neighbouring Syria. Recriminations continued over the US decision to shoot down China’s weather/spy balloon at the weekend. Here’s our explainer on the affair.The Rothschild family is planning to take its investment bank, Rothschild & Co, private as rising interest rates and economic uncertainty bring an end to the period of frenzied dealmaking during the pandemic.For up-to-the-minute news updates, visit our live blogGood evening.A $17bn takeover bid — potentially the biggest acquisition deal this year — has thrown the spotlight on the surging global demand for gold, driven by huge purchases from central banks as well as retail investors seeking protection against inflation.The move by US-listed Newmont, the world’s biggest gold miner, to buy Australian rival Newcrest, could spark a bidding war as other groups look to consolidate. A deal would reunite the companies. Newcrest was originally established as Newmont’s Australian arm in the 1960s before being spun out in 1990 after it merged with BHP’s gold assets. It would also put four of Australia’s five largest gold mines under the control of one company and require Australian government approval.The increase in gold demand to a record 4,741 tonnes last year — the highest in a decade — has been fuelled by “colossal” purchases from central banks, led by China and Russia. Its status as a safe haven asset at a time of geopolitical upheaval has been turbocharged by the “mistrust, doubt and uncertainty” that has followed the decision of the US and its allies to freeze Russia’s dollar reserves. Prices have also been buoyed by the expected slowdown in US interest rate increases.The last time the world experienced this level of buying marked a big turning point in the global monetary system. A European rush to buy US gold in 1967 led to a run on the price, the collapse of the London Gold Pool of reserves and the eventual end of the Bretton Woods system that tied the value of the US dollar to the precious metal.And while disruption from the war in Ukraine has helped make gold a sought-after asset, it is also useful for would-be sanctions busters, notes Jonathan Guthrie, head of the FT Lex column. Bullion can be traded much more easily beyond US oversight than dollars.Given its history of embroilment in money laundering, sanctions enforcers might want to take a close interest in the London market in particular, he suggests. More than 9,000 tons of gold, worth more than $500bn, sits in repositories within the M25 — more than in Fort Knox. Need to know: UK and Europe economyToday’s action by nurses, ambulance workers and paramedics in England and Wales is the biggest strike in NHS history. As the health system nears its 75th birthday, global health editor Sarah Neville tackles the big question: is the NHS broken? The head of pharma company Sanofi said UK economic policy meant the country was falling behind in healthcare innovation.The “wrecking ball of higher inflation and interest rates” has led to UK construction activity hitting its lowest level of activity in more than two years, according to new PMI survey data. Bank of England policymaker Catherine Mann said it was too early to be sure high inflation had been defeated and that more interest rate rises were likely.Need to know: global economyUS president Joe Biden gives his state of the nation address tomorrow. Our latest Big Read examines his case for a second term and whether good news on job creation — as evidenced in Friday’s bumper figures — could override voters’ anger over inflation. While foreign tourists have returned, many Japanese are still reluctant to travel for fears of catching Covid-19, as well as the weakness of the yen. Before the pandemic, about 20mn Japanese citizens travelled overseas each year and spent $21.3bn, according to the UN World Tourism Organization.

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The head of Anglo American, one of South Africa’s biggest investors, warned that the country’s economy was under threat from power cuts, logistical problems and corruption.An export boom and the end of pandemic restrictions helped Indonesia’s economy to expand at the highest rate in almost a decade last year. Gross domestic product growth of 5.3 per cent was fuelled by a 16.3 per cent jump in exports, led by commodities such as coal.Millions of former dabai or “big whites” — the hazmat-suited workers who enforced China’s strict pandemic restrictions — have been left jobless, disillusioned and angry by the abrupt end of Beijing’s zero-Covid policy.Need to know: businessThe Premier League accused Manchester City of breaching financial rules after a four-year investigation into the English football champions. An independent commission will have the power to impose sanctions, including “unlimited” fines, points deductions or even expulsion from the league.A $3.9bn accounting scandal surrounding retail chain Americanas has shaken Brazil, ensnaring some of the nation’s richest men and sparking bitter recriminations and accusations of fraud. Financial markets are rallying as fears of an economic slowdown start to fade and investors pile back into riskier assets. “Markets are pricing in the end of the inflation problem and . . . very heavily discounting the risk of a tail event,” said one research chief.The search wars are back, this time focused on the use of artificial intelligence. Big Tech companies are using their cloud computing arms to pursue tie-ups with AI start-ups, sparking questions about their role as both suppliers and competitors in the battle over “generative AI”. Columnist Rana Foroohar warns of the dangers of important regulatory decisions being left to experts behind closed doors.While global air travel is recovering, the US domestic market has been hit by cancelled flights, missing bags and disappearing routes, spurring calls for tighter regulation. The boom in online shopping and congestion at ports drove a big increase in air freight during the pandemic, but will the growth continue as shipping problems ease? Watch our new video.

Video: Can ecommerce deliver a long-term boost for air freight? | FT Transact

The world of workOrganisations need to rethink conventional career timetables and introduce elements such as a “mid-life MOT” if they are to lure back older workers, says columnist Camilla Cavendish.How long could you survive without a regular income? Here are some tips on how to survive the financial shocks of redundancy.Some good newsChinese researchers have discovered a way of producing hydrogen by splitting seawater without the need to desalinate or purify it first. FT science commentator Anjana Ahuja explains the technology and its significance. More

Magistrates in England and Wales have been told to stop approving warrants that allow energy companies to forcibly fit prepayment meters, following an intervention from a senior judge on Monday. Lord Justice Andrew Edis, senior presiding judge of England and Wales, issued guidance to magistrates courts to halt listing applications for permits of entry until further notice, after energy markets regulator Ofgem opened an investigation into the practice.Ofgem last week ordered British Gas to suspend forcible installations after it emerged that debt collection agents acting on behalf of Britain’s biggest suppliers had been breaking into the homes of vulnerable people to fit prepayment devices. Grant Shapps, UK business secretary, said he had been “appalled” by the treatment of energy customers. The regulator had asked suppliers to voluntarily stop such activities while it carries out two separate investigations into British Gas and the wider prepayment meter market.Ofgem rules dictate that suppliers cannot fit pre-pay meters under a court warrant in the homes of people either considered to be in “very vulnerable situations”, or who would find the experience “very traumatic”.Magistrates courts had previously been routinely issuing installation warrants in bulk. Most applications for such permits are not contested by the householder who must be notified that a warrant has been sought.Edis said in a letter to magistrates on Monday that, in light of the Ofgem investigation, “applications for warrants of entry for the purpose of installing a prepayment meter should, with immediate effect, cease to be listed”.He added that “no further such applications are to be determined until further notice”.Edis noted that the courts must act proportionately and with regard to the human rights of people affected, particularly those who are vulnerable.He said that the decision to recommence listing such warrants will depend on the progress of Ofgem’s investigation and any legislative review. Edis added that the direction did not effect other cases, such as applications for warrants in commercial cases. The Ministry of Justice is to urgently consult with energy companies on the next steps.The Magistrates Association, an independent association that represents magistrates in England and Wales, said it welcomed the new guidance. “As well as highlighting that magistrates have, thus far, been following the correct procedures with regards to such applications, it reiterates that energy companies must follow due process regarding vulnerability assessments,” it said.British Gas owner Centrica has apologised for the “deeply disturbing” behaviour of agents installing prepayment meters in the homes of vulnerable customers on its behalf, which was uncovered by a Times investigation. However, fuel poverty campaigners said the allegations against British Gas were likely to be the “tip of the iceberg”. The End Fuel Poverty Coalition, a group of charities, trade unions and local authorities, had called for a review into the role of magistrates in granting permits to forcibly fit the devices.The use of prepayment meters has raised concerns as they require customers to top up in advance, which tends to be more expensive than paying for electricity and gas via direct debit. Fuel poverty campaigners warned that they also lead to vulnerable households “self disconnecting” if they cannot afford to pay. Citizens Advice, a charity, said that in 2022 more than 27,500 people could not afford to top up their prepayment meter, a higher figure than for the entirety of the previous 10 years combined. More

Higher education for older adults is “seriously at risk” in England as fewer people chose to invest in learning due to the rising cost of living, university leaders have warned. In an attempt to raise national skills levels, the Conservative government has committed to boosting training throughout a person’s lifetime following years of falling participation.Central to its plan is a life-long loan entitlement, which will allow universal access to loan funding for short courses post-18 from 2025. A bill legislating for the change was introduced in parliament last week. But the heads of England’s leading universities for adult learners fear the reforms do not go far enough. They are braced for mid-career learning to decline further as more people stay in work rather than take on debt to finance training.“Life-long adult education provision is seriously at risk,” said David Latchman, vice-chancellor of Birkbeck, University of London, one of the UK’s largest adult learning institutions. Birkbeck and other providers of adult higher education are losing part of a “core market” because people are limiting their spending as the country enters recession, he said. David Latchman: ‘Normally recessions are good for Birkbeck. This one is different — it’s not about not having jobs, it’s about not having the money to pay the electricity bill’ © Isobel EdwardsUK inflation stood at 10.5 per cent in December, with households expecting a 7.1 per cent fall in living standards over the next two years, according to the fiscal watchdog the Office for Budget Responsibility. Rather than take time out to invest in courses, people are looking to take advantage of a tight labour market to work more and increase their earnings.“Normally recessions are good for Birkbeck,” said Latchman, referring to the tendency for enrolment in education to rise with unemployment. “This one is different — it’s not about not having jobs, it’s about not having the money to pay the electricity bill.”Birkbeck, which also specialises in offering degrees for older people on flexible schedules, and has about 10,600 students, saw its intake fall more than 10 per cent in the last academic year compared with 2020-21.It identified a £13mn deficit, requiring cuts of around 140 jobs, which it hopes to achieve mainly through voluntary redundancies. The Open University teaches about half of the UK’s part-time undergraduates, with around 150,000 enrolled last year according to official figures. But its total number of students fell 14 percent in the last academic year after jumping by nearly a quarter after the pandemic began. Tim Blackman, its vice-chancellor, said adjusting to declining numbers after a rapid expansion meant the university would have to cut its operating budget by 16 per cent cut over the next four years. Both Birkbeck and the Open University said their financial constraints were intensified by inflation and the need to keep fees low. The pressures on both institutions sound the alarm on what could be further declines in life-long learning, after a decade of falling participation. Analysis of government figures by the Institute for Fiscal Studies think-tank shows that take-up of level 4 or 5 qualifications — often taken as part-time courses and at a standard between A-levels and full degrees — each fell 34 per cent between 2015-16 and 2020-21. In the decade up to 2020, the number of part-time undergraduates in England nearly halved.Ben Waltmann, an IFS economist, said this was “almost certainly” due to reforms to student finance in 2012 that replaced government grants for university teaching with student loans.That increased fees and shifted the burden of paying them to students. The changes also meant loans were only available for full-length qualifications, not modules, so interest in short courses plummeted. Older people with financial obligations, caring responsibilities and existing work commitments, also became less likely to study because it would mean taking on debt, Waltmann said.At Birkbeck academic staff, who opposed job cuts, said the removal of direct public funding had damaged institutions that provide life-long learning and called for more support. “The opportunities to see higher education as something you might engage with as you would a community centre or a church are becoming very marginalised,” one lecturer said.

Birkbeck students in the earth and planetary sciences department © Birkbeck

The government hopes to fix the problem with its Lifelong Loan Entitlement, which will allow students to access loan funding for modules within courses, rather than full qualifications. Gillian Keegan, the education secretary, called the policy a “profound shift in the way students of all ages can obtain funding for further and higher education”. Latchman said the entitlement could make a “huge difference” by making it simpler to take out a loan. However, others are concerned that the plan will repeat the problems of the existing system, by offering another loan.Blackman feared adult learners would still be dissuaded by the prospect of debt. A lack of maintenance funding would make it impossible for them to study in a cost of living crisis, he said. “If there are economic problems it’s even more unlikely to work.”

While the Open University was “here to stay”, he said, the economic climate meant that potential students would need more incentives to enrol in courses.“Our potential students are not coming to us because they are focusing on their family, getting a second job paying the bills,” he said. “But that’s exactly when they need to focus on . . . improving their skills.” More