The move comes as part of the company’s response to the rise in the independent Living Wage set by the Living Wage Foundation. BP’s decision to adjust its benefits package follows the trend among other retailers, including Sainsbury‘s and Asda, who have made similar cuts in response to rising labour costs. However, workers fear that this decision will leave them worse off despite the promised hourly wage increase.
The End of Paid Breaks and Premium Pay for Bank Holidays
Under the new changes, BP will no longer pay employees for rest breaks or offer premium pay for certain bank holidays. At present, workers receive 1.5 times their normal pay for working on bank holidays and are also compensated for breaks during shifts. For shifts of four to six hours, employees are paid for a 20-minute break, while shifts longer than six hours receive a 30-minute break.
According to a source within BP, the elimination of these benefits means that employees who currently earn £100.80 for an eight-hour shift with a paid break would see this reduced to £100.87 under the new pay structure, an almost negligible difference that workers feel doesn’t make up for the loss of benefits. This has led to complaints that BP is effectively disguising a pay cut by presenting the minimum wage increase as a “new benefit.”
The change has sparked frustration, particularly as many employees have expressed concerns that they were not adequately informed about the impact of these modifications. Workers, according to one insider, are being encouraged to accept these changes without full understanding of their rights, including the option to disagree with the alterations.
Wage Increases and Concerns About Worker Wellbeing
While BP has confirmed that employees will see a rise in their base hourly pay to £13.45 in February 2026, an increase of 6.7%, many believe that this wage hike will not offset the loss of key benefits. The new pay rate, in line with the Living Wage Foundation’s fair pay scheme, is aimed at ensuring BP remains competitive within the UK retail market. However, according to some workers, the cut to paid breaks and bank holiday bonuses effectively undermines the wage rise.
Paul Nowak, General Secretary of the Trades Union Congress (TUC), expressed concern that BP’s actions would hit employees hard, particularly in a time when many are still grappling with the aftermath of rising living costs. He labelled the move a “stealth pay reduction” and emphasised the importance of protecting workers from such contractual changes.
Many workers are questioning the timing of these cuts, as the cost of living continues to rise across the UK. The reduction of paid breaks and bank holiday premiums, according to Nowak, signals a broader shift in how large companies are responding to financial pressures, with employee wellbeing taking a back seat in favour of cost-saving measures.
