Ruth So new policy is effectively outlawing compressed hours only, but will consider other part time requests? That's not as bad, although still ill-advised on their part. Regardless of what their decisions will be on any individual request, stating up front that a particular type of request will result in a blanket refusal is daft and leaves them vulnerable legally imo.
Compressed hours are tricky, lots of issues depending on the job and the organisation. Is your DH a lawyer? It sounds as though he might be. My DH is as well. His contract says 9-5, but days where he does 9-5 are so rare I could probably count them on the fingers of one hand and he's been at his employer for 10 years. Same with lots of jobs. In places I've been employed, working full time has rarely meant 9-5, and for senior posts especially has more often meant 8.30-6ish or similar, later when busy.
Agreeing compressed hours for someone has to take into account the reality of what happens on the ground in a normal working week, not just what it says in the contract about hours. So someone who wants compressed hours and wants those defined as (say) 8.30-6.30 with Friday off is likely to p* off colleagues who work those hours every single day, although their contract says 9-5. I'm not saying that's what your DH is suggesting at all, just highlighting the issue really as a more general point. I have made myself unpopular on several occasions by refusing to consider people who suggest working through half their lunch to leave early, on the basis that no one else takes a whole lunch hour anyway so it wouldn't be fair. In an environment where everyone takes an hour, obviously that's different but if no one in reality takes longer than half an hour anyway, one person wanting to be paid for the other half and leave early is a problem.
If it's normal to work more than 40 hours (or whatever contract technically says) as full time and that is even taken into account by the person requesting compressed hours, there may be the issue of irregular hours.
DH technically works 9-5 as I've said. In a non-busy week he might get away with 9.30 - 6ish for at least part of it. In an 'average' week, he'd probably do 8.30 - 6.30 often with a bit from home in the evening. In a really busy week he might be at the office really late most days and also be working over the weekend from home.
In that environment, how does one agree compressed hours? How would that actually work when hours are so changeable? I'm not saying it couldn't necessarily, but it would be very difficult to do so and be fair to others working full time who are in the office 5 days rather than 4 (or 10 days rather than 9).
I do think a company should not specify within it's flexible working policy which types of requests it will consider. Having said that, depending on the working environment and realities of the job, I have lots of sympathy with companies reluctant to consider compressed hours. Fine where hours are actually 9-5, or where they are at least regular. But agreeing it in environments I've mentioned and monitoring it and managing it effectively is a different ball game and very difficult.
I have to say I also think the argument about 'everyone else wanting it' is a valid one. Saying yes to a particular type of request will have an impact on future requests, and make it much harder to justify a refusal. So it's not that 'everyone will want it', more that a precedent has been set. Not that it would be impossible to refuse, for example if everyone wanted the same day off, but it would be harder. I wouldn't put that argument in the letter refusing a request tbh, but again I have sympathy with that point of view.
Has your DH considered putting forward any compromises? A half-day reduction in pay over the fortnight and working from home the other half of the day in question? Or going for the reduction in pay for the whole day and being able to take it off completely? The difficulty then is of course managing to actually reduce the amount of work commensurate with the new reduced hours. Again difficult in certain jobs!