Four in 10 employees in the UK have had to borrow money or use credit cards to cover a work expense, at a time when one in five are skipping meals or not buying day-to-day essentials.
A survey by payroll company PayCaptain has revealed that more and more employees are under increased financial pressure because they need to cover business expenses during a cost-of-living crisis.
A quarter of respondents to the survey said having to cover work expenses was putting pressure on them paying their own essential bills.
Younger workers faced greater pressure, according to PayCaptain, with one in six deciding to work from home because they cannot afford to travel.
On average, employees need to cover business expenses up to five times a month, which can amount to an additional £273 in outgoings. A fifth must do so two-to-four times a week, and some have to cover up to £4,800 a year.
Covering expenses is negatively affecting workers’ mental health, the survey found. One in six said it had an impact on their relationships on top of having to pay for their usual essentials.
More than three-quarters said worrying about money affected their productivity at work.
The company published the research to accompany the launch of the “instant expenses” feature in its software, which enables employers to reimburse staff straight away.
PayCaptain’s CEO Simon Bocca said: “It’s shocking that UK businesses continue to expect employees to put themselves in challenging financial positions to cover company expenses, particularly in a cost-of-living crisis.
“Provisions need to be put into place to help safeguard workers when expenses are essential as clearly current archaic processes just don’t work. So many companies claim that their workforce is the beating heart of their operations, but this report shows that so many don’t offer anywhere near enough support.”
Last month, research from Cigna Healthcare found that more than half of UK adults were struggling to stay healthy due to rising energy prices and food bills.
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In its global survey, it revealed that just 30% of UK adults rated their financial wellbeing as high, compared with 70% in Saudi Arabia and 61% in the UAE.
