In a move set to impact thousands of workers, BP has announced it will remove paid rest breaks and most bank holiday bonuses for staff at its company-run petrol forecourts across the UK.
Offsetting the Living Wage Increase
The energy giant, an accredited member of the Living Wage Foundation, is making the changes as it prepares to implement a mandated increase in the independent living wage. Hourly pay for affected workers will rise from £12.60 to £13.45 in February 2026, a 6.7% increase aligned with the foundation's scheme.
However, BP confirmed it will simultaneously end the practice of paying for rest breaks and premium rates on most national bank holidays. The changes will affect approximately 5,400 employees across 310 company-operated forecourts. Staff at a further 850 partner-run BP sites are on separate pay agreements and are not immediately affected.
Calculating the Real Impact on Pay
One worker, speaking anonymously, argued that the loss of benefits would reduce take-home pay by at least 6.25%, effectively wiping out much of the hourly wage rise. BP has disputed this specific percentage but has not provided its own alternative calculation.
Currently, most BP forecourt employees receive time-and-a-half for working bank holidays and are paid for a 20-minute break during a four-to-six hour shift, or a 30-minute break for shifts longer than six hours.
According to analysis, an employee working an eight-hour shift with a 30-minute paid break would earn approximately £100.87 under the new structure, compared to £100.80 currently—a marginal difference that fails to account for the loss of lucrative bank holiday premiums.
Worker Concerns and Industry Context
A source expressed frustration at how the changes were communicated, stating that managers were summoned to BP's Sunbury headquarters to be informed. The source accused BP of "framing the announced increase to the real living wage... as a new benefit they are going to offer instead [of paid breaks and bank holiday premiums]", when the company was already committed to the annual rise as a living wage employer since 2020.
There are also concerns that workers may feel pressured to accept the alterations to their contracts without fully understanding their rights or being offered compensation. Under UK law, workers are entitled to an uninterrupted 20-minute break if they work more than six hours, but employers are not required to pay for it.
This move by BP follows a trend in the retail sector, where companies like Asda, Morrisons, and Sainsbury's have also cut paid breaks to offset rising labour costs, including increases to the national minimum wage and employer national insurance contributions.
BP defended its decision, with a spokesperson stating: "We regularly review our pay and benefits to stay fair and competitive... From February, we will no longer pay for rest breaks and pay premium rates on fewer national bank holidays. However, we will be increasing our base hourly pay and... bring in this annual increase two months earlier than usual."
Paul Nowak, the TUC General Secretary, criticised the timing: "Workers are still suffering a severe cost of living hangover... This would be the worst possible time for BP to cut benefits and impose a stealth pay reduction." He added that future employment rights legislation would aim to prevent such unilateral changes to workers' pay and conditions.
