Employees across the UK are paying out almost £6 billion a year in work-related costs, new research suggests – a sum greater than the nation’s total overdraft debt.
The study, published in Conferma’s latest Invisible Bank Report, found that staff are now personally covering an average of £238 each month on expenses such as travel, meals and accommodation. That equates to £2,856 annually – more than triple the average UK overdraft balance of £709.
The research points to a sharp rise in costs since 2019, when the average outlay was £72 a month. After adjusting for inflation, that still represents a 168% increase.
Return-to-office link
The surge in out-of-pocket spending appears to be closely tied to return-to-office (RTO) mandates. Nearly three-quarters of employees (74%) surveyed said such policies have pushed up the number of work-related purchases they are expected to cover upfront.
Jason Lalor, chief executive of Conferma, said: “Employees aren’t choosing to lend their companies money. They’re forced to because corporate payment technologies are outdated and painful to use. This simply isn’t good enough.”
Financial strain
The financial strain is being felt unevenly across the workforce. Two-thirds of employees (68%) reported cash flow problems linked to outdated reimbursement processes, with the proportion rising to 72% among 18–28 year-olds. In that younger age group, more than two in three said the delays had left them with less money to spend on essentials.
On average, staff lose £222 each year due to late or missed reimbursements, with companies taking about two and a half weeks to repay expenses. Around one in five workers (20%) admitted to borrowing money from friends or family to cover business costs.
For mid-career employees, the issue also carries professional risks. Among 35–44 year-olds, 58% said they feared career setbacks if they turned down business travel, while 82% reported rising personal spending since returning to the office.
Workplace impact
The knock-on effects are stretching beyond employees’ wallets. The report found that staff lose the equivalent of a full working day each month navigating manual payment and reconciliation systems. More than half (53%) said they had avoided making necessary purchases for work to sidestep the personal financial hit – delaying decisions and disrupting operations.
Shift to virtual payments
Conferma argues that embedded virtual payment systems could help remove the need for staff to cover company costs at all. By linking payments directly to booking systems, virtual cards provide faster reimbursement and greater oversight for employers.
“Staff are spending thousands of pounds a year on work costs that businesses should be covering upfront. That’s before you count the time, stress and disruption involved,” Lalor said. “Virtual payments aren’t just a convenience – they’re a fundamental part of how modern businesses should operate.”
