British Airways is on the brink of a long-term pay deal with its pilots, aimed at removing the renewed threat of strike action until at least 2027.
Sky News has learnt that BA, a subsidiary of the FTSE 100 company International Airlines Group, was applying the finishing touches to an agreement with BALPA, the airline pilots’ union, on Thursday morning.
The three-and-a-half-year deal, which has been the subject of months of negotiation, expected to secure the agreement of BALPA, which would then ballot its members on the proposal.
One source said they expected the deal to be communicated later on Thursday.
Under the agreement, BA pilots will receive a 4% pay rise this year, backdated to June, followed by further uplifts of 1.5% in December, 2.5% next June, and a further 2% six months later.
That will then be followed by a 0.5% rise in March 2025, 2.5% in June of that year and another 2.5% in June 2026.
Pilots will also receive a one-off payment of £1,000 this November, according to a source close to the talks.
They will also participate in a new reward scheme based on BA’s operating profit performance, which could trigger bonuses worth thousands of pounds.
The next pilot pay review will take place in January 2027.
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The BALPA agreement comes weeks after unions representing about 24,000 other BA staff secured a 13% pay increase spread over 18 months.
A BA spokesperson said: “We are pleased that we have now reached an agreement in principle for the pilot pay award 2023-27.
“BALPA will now ballot its members on the agreement in principle.
“The pay offer builds on a number of pay and reward changes made in 2022 to support colleagues throughout the business at a time of ongoing cost of living pressures.”
Sir Alan Bates has reached a seven-figure deal to settle his claim over the Post Office Horizon scandal, more than 20 years after he began campaigning over what turned into one of Britain’s biggest miscarriages of justice.
Sky News has learnt that the government has agreed a deal with the former sub-postmaster after handing him what he described as a “take it or leave it” offer during the spring.
Sir Alan has previously said publicly that that proposal amounted to 49.2% of his original claim.
One source suggested that his final settlement may have been worth between £4m and £5m, implying that Sir Alan’s claim could have been in the region of £10m, although those figures could not be corroborated on Tuesday morning.
A government spokesperson said: “We pay tribute to Sir Alan Bates for his long record of campaigning on behalf of victims and have now paid out over £1.2bn to more than 9,000 victims.
“We can confirm that Sir Alan’s claim has reached the end of the scheme process and been settled.”
Sky News has attempted to reach Sir Alan for comment about the settlement of his claim.
Sir Alan led efforts over many years to prove that the Horizon software system supplied by Fujitsu, the Japanese technology company, was faulty.
Hundreds of sub-postmasters were wrongly prosecuted between 1999 and 2015, with scores of people either ending their own lives or making attempts to do so.
However, it was only after ITV turned their fight for justice into a drama, Mr Bates Vs The Post Office, that the government accelerated plans to deliver redress to victims.
Even so, the compensation scheme set up to administer redress has been mired in controversy.
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4:32
Will Post Office victims be cleared?
Writing in The Sunday Times in May, Sir Alan described the process as “quasi-kangaroo courts in which the Department for Business and Trade sits in judgement of the claims and alters the goalposts as and when it chooses”.
“Claims are, and have been, knocked back on the basis that legally you would not be able to make them, or that the parameters of the scheme do not extend to certain items.”
Sir Alan had previously been made compensation offers worth just one-sixth of his claim – which he had labelled “derisory”, with a second offer amounting to a third of the sum he was seeking.
Sir Ross Cranston, a former High Court judge, adjudicates on cases where a claimant disputes a compensation offer from the government and then objects to the results of a review by an independent panel.
In 2017, Sir Alan and a group of 555 sub-postmasters sued the Post Office in the High Court, ultimately winning a £58m settlement.
However, swingeing legal fees left the group with just £12m of that sum, prompting ministers to establish a separate compensation scheme amid a growing outcry.
A significant number of other sub-postmasters have also complained publicly about the pace, and outcome, of the compensation process.
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3:01
‘This waiting is just unbearable’
The first volume of Sir Wyn Williams’s public inquiry into the Horizon scandal was published in July, and concluded that at least 13 people may have taken their own lives after being accused of wrongdoing, even though the Post Office and Fujitsu knew the Horizon system was flawed.
The miscarriage of justice left the Post Office’s reputation, and that of former bosses including chief executive Paula Vennells, in tatters.
A subsequent corporate governance mess under the last government further dragged the Post Office’s name through the mud, with the then chief executive, Nick Read, accused of being absorbed by his own remuneration.
In recent months, the government has outlined a further redress scheme aimed at compensating victims of the Capture accounting software which was in use at Post Offices between 1992 and 2000.
Since then, a new management team has been appointed and has set the objective of boosting postmasters’ pay and overhauling technology systems to enable Post Office branches to offer a broader range of services.
Every week, the Money team answers a reader’s financial dilemma or consumer problem – email yours to moneyblog@sky.uk. Today’s is…
My father passed away in April 2022. My mother was formally diagnosed with dementia a few months later. After Dad passed I helped Mum take care of the lion’s share of admin and tried to simplify things in her life cognisant of her reduced capacity. One of the things was to cancel the Sky subscription as this was only ever for Dad to watch the football. In June this year Mum went into full time care and as her son, with full power of attorney, I went about mitigating all her outgoings as I didn’t want her to be paying out unnecessarily now that she was in full-time residential care where everything is covered. Here I unearthed a BT Sport subscription which my mum had been charged for in the past three years. I explained that there was no way my mother would be aware she had this service let alone would use it. We didn’t get any paper bills. BT is unwilling to waiver the charges other than initially offering a paltry £30 on compensation and then at a later date was prepared to offer a further £80, which I declined – this amounts to more than £1,000. Barry
Thank you for your email, Barry – I was really sorry to read about what your family has gone through and your story illustrates the minefield that often awaits relatives when a loved one dies.
This is far too big a topic to cover in one post but it’s worth going over some basics that apply across the board (and Citizens Advice has a useful guide here).
When someone dies, the executor named in any will is responsible for sorting the deceased’s financial affairs. If there isn’t a will, an administrator will be appointed – usually a friend or relative.
There are a couple of mechanisms that can help.
There’s the government’s Tell Us Once scheme, which will notify multiple organisations:
HMRC – to deal with personal tax and to cancel benefits and credits, for example child benefit;
Department for Work and Pensions – to cancel benefits and entitlements, for example universal credit or state pension;
Passport Office – to cancel a British passport;
DVLA – to cancel a licence, remove the person as the keeper of up to five vehicles and end the vehicle tax;
Local council – to cancel housing benefit, council tax reduction, a Blue Badge, inform council housing services and remove the person from the electoral register;
Social Security Scotland – to cancel benefits and entitlements from the Scottish government, for example Scottish child payment.
Tell Us Once will also contact some public sector pension schemes and Veterans UK to cancel or update Armed Forces Compensation Scheme payments.
Another mechanism is the Death Notification Service, which many major banks and building societies have signed up to and can help when dealing with multiple accounts.
You probably noticed that none of the above cover household bills and subscriptions – there are no shortcuts here other than contacting each organisation.
We have abbreviated your email above, but the key detail is that your mum was ultimately responsible for sorting your dad’s financial affairs – but, given she was just a few months from an official dementia diagnosis, she arguably wasn’t in a fit position to do so.
Had she been diagnosed at the time, it would have been possible to ask a court to replace her as executor and, with access to your father’s bank statements, you would no doubt have spotted the BT Sport subscription fee coming out each month.
Sadly, this wasn’t the case – and BT continued to legitimately charge for a service it was still providing.
Ultimately, it’s hard to pin blame on either side here. It’s an unfortunate case that was hard to avoid – though I would have been surprised if BT didn’t make some effort to help your family.
After I got in touch with them, they responded quickly – and it wasn’t long before they reached out to you.
Though the company maintained no errors were made on their part, they offered you a goodwill gesture that you told me you were happy with.
In a statement to me, BT said: “While the family had Sky, they were also accessing and paying BT for TNT Sports on their Sky box.
“We have spoken to Barry who acknowledges that while the Sky TV service was cancelled, BT were never contacted to report a bereavement or request cancellation of the service.
“Although there has been no BT error, we have offered a reimbursement of six months to acknowledge their experience.”
This feature is not intended as financial advice – the aim is to give an overview of the things you should think about. Submit your dilemma or consumer dispute via:
The US ambassador to the UK has said Britain should carry out “more drilling and more production” in the North Sea.
In his first broadcast interview in the job, Warren Stephens urged the UK to make the most of its own oil and gas reserves to cut energy costs and boost the economy.
“I want the UK economy to be as strong as it possibly can be, so the UK can be the best ally to the US that it possibly can be.
“Having a growing economy is essential to that – and the electricity costs make it very difficult.”
Mr Stephens told Wilfred Frost he hoped Britain would “examine the policies in the North Sea and frankly, make some changes to it that allows for more drilling and more production”.
“You’re using oil and gas, but you’re importing it. Why not use your own?” he asked.
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Image: Mr Stephens said Britain should make more of its own oil and gas
The ambassador said he had held meetings with Sir Keir Starmer on the energy issue while US President Donald Trump was in the room, and that the prime minister was “absolutely” listening to the US view.
“I think there are members of the government that are listening,” Mr Stephens told Sky News. “There is a little bit of movement to make changes on the policy and I’ll hope that will continue.”
Energy Secretary Ed Miliband has said the UK should be prioritising net zero by 2030 to limit climate change, rather than issuing new oil and gas drilling licences.
Image: The Thistle Alpha platform, north of Shetland, stopped production in 2020 . Pic: Reuters/Petrofac
However, the ambassador said it would take “all energy for all countries to compete” in the future, given the huge power demands of data centres and AI.
“I don’t think Ed Miliband is necessarily wrong,” said Mr Stephens. “But I think it’s an incorrect policy to ignore your fossil fuel reserves, both in the North Sea and onshore.”
The ambassador hosted Mr Trump on the first night of his second UK state visitin September – a trip that was seen as a success by both sides.
Mr Stephens said Mr Trump and Sir Keir had a “great relationship” and pointed to the historic ties between Britain and the US as a major factor in June’s trade deal and the favourable tariff rate on the UK.
Image: The ambassador said Sir Keir and President Trump have a ‘great relationship’
“The president really loves this country,” the ambassador told Sky News.
“I don’t think it’s coincidental that the tariff rates on the UK are generally a third, or at worst half, of what a lot of other countries are facing.
“I think the prime minister and his team did a great job of positioning the United Kingdom to be the first trade deal, but also the best one that’s been struck.”
Mr Stephens – who began his job in London in May – also touched on the Ukraine war and said Mr Trump’s patience with Russia was “wearing thin”.
The Alaska summit between Mr Trump and Vladimir Putin failed to produce a breakthrough, and the US leader has admitted the Russian president may be “playing” him so he can continue the fighting.
The ambassador told Sky News he had always favoured a tough stance on Russia and was “delighted” when Mr Trump sanctioned Russia’s two biggest oil firms a few weeks ago.
‘The incorrect policy’ – That’s Trumpian diplomacy for you
“You’re using oil and gas, but you’re importing it. Why not use your own?”
It’s a reasonable question for President Trump’s top representative here in the UK – ambassador Warren Stephens – to ask, particularly given that our exclusive interview was taking place in the UK’s oil capital, Aberdeen.
The ambassador told me that he and President Trump have repeatedly lobbied Prime Minister Starmer on the topic, and somewhat strikingly said the PM was “absolutely listening”, adding: “I think there are certainly members of the government that are listening. And there is a little bit of movement to make some changes to the policy.”
Well, one member of the government who is seemingly not listening, and happens to be spending most of this week at the UN Climate Change Conference in Brazil, is Energy Secretary Ed Miliband.
“It’s going to take all energy for all countries to compete in the 21st century for AI and data centres,” the ambassador told me. “And so, I don’t think Ed Miliband is necessarily wrong, but I think it’s an incorrect policy to ignore your fossil fuel reserves, both in the North Sea and onshore.”
Not wrong, but the incorrect policy. That’s Trumpian diplomacy for you.
His comments on Russia, China and free speech were also fascinating. On the latter, he said that in the US someone might get “cancelled for saying something, but they’re not going to get arrested.”
“The president, has been, I would say, careful in ramping up pressure on Russia. But I think his patience is wearing out,” said Mr Stephens.
“One of the problems is a lot of European countries still depend on Russian gas,” he added.
“We’re mindful of that. We understand that, but until we can really cut off their ability to sell oil and gas around the world, they’re going to have money and Putin seems intent on continuing the war.”
The ambassador also struck a cautious but hopeful tone on future US and UK relations with China.
China’s huge economy is too big to ignore – but it remains a major spy threat; the head of MI5 warned last month of an increase in “state threat activity” from Beijing (as well as Russia and Iran).
Mr Stephens praised the country’s economy and said it would be “terrific” if China could one day be considered a partner.
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1:50
Trump-Xi meeting: Three key takeaways
But he warned “impatient” China is ruthlessly focused on itself only, and would like to see the US and the West weakened.
“There’s certainly things we want to be able to do with China,” added the ambassador.
“And I know the UK wants to do things with China. The United States does, too – and we should. But I think we always need to keep in the back of our mind that China does not have our interests at heart.”