More than three-quarters (76 percent) of employees face higher work expenses in December, with 52 percent paying double their usual amount.
The results were revealed in a survey of 1,000 employees, conducted on behalf of fintech firm Pleo.
This hike in expenses costs means that 48 percent reported being left more out-of-pocket than the rest of the year. Well over half of the respondents (59 percent) said they would prefer timely reimbursements over Christmas parties or company gifts.
This rise in expenses spend coincides with the cost of living skyrocketing in the UK. Inflation is expected to hit 3 percent in 2025, while Ofgem has already announced that the average energy bill will increase by 1.2 percent from January. Given the financial pressures, UK employees are not in the best position to be spending more on business expenses.
Businesses typically have expense and reimbursement processes in place, but almost half (47 percent) of employees are experiencing longer wait times for expenses to be reimbursed over the festive period.
As a result, 37 percent said they have had to cancel their personal plans in the past due to increased business expenses. More than two-fifths (45 percent) are worried this will affect their ability to buy gifts or keep seasonal commitments such as drinks, dinners and even pantos this year.
The research found that 54 percent of employees feel out-of-pocket when advancing business expenses, with nearly half (49 percent) reporting that they this has been exacerbated by forgetting or delaying submissions. Part of the problem is around the process of submitting expenses, with 48 percent of employees saying they find claiming expenses stressful and problematic.
Half of employees surveyed said they have to wait too long before receiving the money they are owed. More than a quarter (28 percent) of UK workers reported waiting for up to two working weeks for payments, and 19 percent have had to wait for a month. Only 4 percent have their expenses claims paid within 24 hours.
Survey responses show that large corporations are the worst offenders when it comes to lengthy reimbursement timelines, with 32 percent of those working for enterprises (500+ employees) saying it takes up to a month to be reimbursed, compared to just 14 percent of those in a small business with between 10-49 employees.
Delays in receiving expense payments has meant that 46 percent of employees have experienced disruption to their personal and/or family finances.
This issue is far reaching as almost three-fifths (59 percent) of UK employees incur expenses up to once a week, and 23 percent spend an average of £100 per month. A small, but still significant number (5 percent) said that they advance £2,000 – £3,000 of their own money each month.
This has created a situation where half (49 percent) of employees are hesitant to pay up, and more than half of UK respondents (56 percent) believe that advancing money on their employer’s behalf is outdated. More than a third (36 percent) of respondents said they have clashed with their employers over extended reimbursement timelines.
James Keating, CMO at Pleo, said: “Far too many employees are forced to dip into their own pockets to cover work expenses, especially during the festive season, with many relying on credit or overdrafts just to keep up. This isn’t just a financial burden – it’s a serious wellbeing issue. Employees should feel supported by their employers, not stressed or anxious about managing workplace costs.
“The current approach to expense management isn’t working; it’s outdated and unfair. Businesses need to rethink how they handle expenses, moving beyond quick fixes to create systems that genuinely empower their teams. We’ve shown that expense management can be simple, efficient and stress-free. By putting both employers and employees in control, businesses can eliminate unnecessary financial strain and foster a more positive, productive work environment where no one is left out-of-pocket or out of patience.”
