SCOTTISH workers are stepping up their return to the office because of growing concerns over the cost of living, a prominent Scottish law firm has observed.

Senior partners at Edinburgh-based Lindsays have been told by clients that staff are beginning to work from home less frequently as concerns mount over household energy bills.

Many employers have in recent months adopted “hybrid” models, allowing employees to split their working weeks between the office and home, since Covid restrictions were eased at the start of the year.

Now, with annual UK consumer price index inflation having increased to 10.1 per cent in September, interest rates now 3% following the most recent hike by the Bank of England, recession looming, and support for energy bills expected to be withdrawn from spring, employers are seeing people coming into the office more often to minimise household bills.

The trend has been observed by Louise Norris and Ben Doherty, respectively commercial property partner and employment law partner at Lindsays’ Glasgow office, following talks with clients.

They say the rising cost of heating homes and electricity used to power appliances such as computers, kettles and washing machines is pushing people back to the office. People are using smart meters to calculate where the most cost-effective place is to carry out their work, they add.

Ms Norris said: “There are clear signs in our client base and throughout the market that offices are filling up again. We will not be able to perform a full analysis on this until after the winter, but the widespread conversations we have across the sector make it clear that the biggest change to the post-Covid working assumption is being driven by the cost of staying at home. We may see, for some at least, [people] coming full circle from office to home to hybrid to office.”

Asked if employees were weighing up potential savings on domestic bills against the cost of driving or taking public transport to work, Ms Norris added: “It’s definitely a factor. We are not yet in a position to do detailed analysis but, anecdotally, people are telling us that, in order to save money at home they have staff who are returning to the office.

“That’s particularly true for those who do not have long commutes. Over the course of the winter, they think they may be able to save more on their utility bills, even offset against their travel costs. As we know, people are incredibly nervous about their utility bills. That’s influencing decisions about where they work and how often.”

Mr Doherty declared the shift is a “potential win-win” for employers and their employees.

He said: “Although it varies from industry to industry, there is no doubt that, while respecting hybrid working and seeing its upsides, in general employers want their people at the office as much as possible. If that allows employees to save money at the same time, then that’s a good result all round.”

Asked how employers are responding to the change, Mr Doherty added: “I think most employers will welcome staff back with open arms. While home working has brought with it great advantages – and employers have worked really hard to adapt – people increasingly recognise that spending even part of your working week with colleagues can bring with it huge advantages, whether that be in terms of professional collaboration and personal contact.

“Most of the employers we work with are welcoming of at least a hybrid model of working, where it’s possible and appropriate. If people want to spend their whole week in the office, they are generally welcoming of that.”

While he acknowledged the benefits of hybrid working, Mr Doherty noted: “Working as a team is always better than in isolation. The value of simply being able to turn to a colleague and ask a question is massive. We can probably all appreciate that more now than we did pre-Covid.”

Ms Norris said the experience of the pandemic has taught employers to be flexible in their use of office space when asked if this latest trend would force companies to change layouts again. Many workplaces invested to adapt to Covid restrictions earlier in the pandemic, and then more recently changed again to reflect hybrid working needs.