UK Workers Fail To Claim £1.4 Billion in Expenses

A recent study has revealed that UK workers have failed to claim an estimated £1.4 billion in work-related expenses over the past year, leaving a significant sum unaccounted for in their financial wellbeing. The research, conducted with a sample of 2,000 employed adults, shows that since August 2023, 22% of workers have not claimed back some of their work-related expenses, with the average unclaimed amount totalling £16.71 per month.

Missed Opportunities in Common Expense Claims

The study highlights that some of the most frequently missed expenses include mileage (19%), refreshments (16%), and parking fees (15%). One of the main reasons cited by 26% of respondents was the belief that the amounts were too insignificant to warrant the effort. Other factors, such as lost receipts (24%) and the perceived complexity of the expense submission process (21%), also played a role in workers neglecting to claim back costs.

Steve Paul, deputy CFO of expense management provider Equals Money, who commissioned the research, commented: “Many workers underestimate the impact of unclaimed expenses, often dismissing small amounts as insignificant. However, what might seem like just a few pounds here and there can quickly add up to hundreds or even thousands over time. By neglecting to claim these expenses, employees are essentially leaving money on the table, which could have a significant impact on their financial wellbeing.”

Paul also noted that late submission of expenses can create cash flow difficulties for employers, who are left struggling to monitor company expenditure effectively.

The Challenges of the Current Expense System

The study further found that 55% of employees are required to submit expenses at least once a month. However, navigating the claims process does not come without challenges. Around 18% of workers have had their expense claims rejected, with one in three of these individuals feeling they were treated unfairly. Some rejections were due to employees submitting claims incorrectly (25%) or lacking the necessary documentation (24%) to support the expense.

Additionally, nearly a quarter (23%) of respondents discovered that certain costs were not covered by their company’s policy, underscoring the limitations of outdated expense management systems. These barriers not only impact workers’ ability to claim reimbursements but also diminish confidence in the system.

A Need for Improvement

On average, workers submitting expenses put through a total of £155 each month. While 40% of employees submit their claims at the earliest opportunity, 30% prefer to wait and process all their receipts and invoices at once. On average, workers spend 27 minutes per month ensuring they will be reimbursed.

Although many workers experience prompt reimbursements—43% of respondents report being reimbursed within a week—others face delays, with 15% stating they have to wait until their next payday. These delays can cause anxiety, with 24% of respondents admitting that they have been concerned about covering work-related costs due to potential difficulties in getting reimbursed.

Three-quarters of workers in the study emphasized that a quick and efficient expense system contributes to their sense of being valued by their employer. Additionally, over half (52%) said that timely reimbursements signal respect for their personal finances.

Implementing real-time, user-friendly expense management systems benefits both employees and employers. Such systems enable businesses to gain better control over their finances, while fostering a culture of fairness and supporting the financial health of their workforce.

The Workers Union says…

“As the study shows, workers across the UK are missing out on substantial sums by neglecting to claim expenses. With modernized systems and greater awareness, this trend can be reversed, ensuring employees are fairly compensated for work-related costs.”

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