A staggering 76% of employees surveyed face higher work expenses in December, with over half (52%) paying double their usual amount. As a result, 48% are left more out-of-pocket than the rest of the year, with 59% preferring timely reimbursements over Christmas parties or company gifts.

This coincides with the cost of living skyrocketing in the UK. Inflation is expected to hit 3% in 2025, while Ofgem has already announced that the average energy bill will increase by 1.2% from January. Paired with yo-yoing inflation, UK employees are not in a position to be shelling out money on business expenses.

Businesses typically have expense and reimbursement processes in place, but almost half (47%) of employees are experiencing longer wait times for expenses to be reimbursed over the holiday period. This is set to have a dramatic impact on employees’ personal lives this Christmas, with over a third (37%) having had to cancel their personal plans in the past due to increased business expenses at this time of year. While almost half (45%) are concerned they won’t be able to afford gifts or festive commitments such as drinks, dinners and even pantos this year.

Broken processes leaving employees broke

Despite workplace expense issues worsening in December, the underlying problems run much deeper. Research reveals that, in general, 54% of employees feel out-of-pocket when advancing business expenses, with nearly half (49%) reporting they’ve been left out-of-pocket due to forgetting or delaying submissions. Adding to the challenge, 48% of employees find the process of submitting and claiming expenses stressful, highlighting the inefficiencies and unfair reliance on employees within current business processes.

One in two (50%) employees say they have to wait too long before being reimbursed. This comes as no surprise when 3 in 10 (28%) UK workers are being left out-of-pocket for up to two working weeks and 19% for a month. While only 4% are being reimbursed immediately (within 24 hours). Large corporations are the worst offenders when it comes to lengthy reimbursement timelines, with 32% of those working for enterprises (500+ employees) saying it takes up to a month to be reimbursed, compared to just 14% of those in a small business with between 10-49 employees.

Shortchanged and ready for change

Expenses are having a detrimental impact on most UK workers with 46% having had their personal and/or family finances disrupted due to advancing their own money. And while the majority (59%) of UK employees incur expenses up to once a week, and almost a quarter (23%) averaging a spend of £100 per month, 5% say that, on average, they advance £2,000 – £3,000 of their own money each month.

This has created a situation where half (49%) of employees are hesitant to pay up, and more than half of UK respondents (56%) believe that advancing money on their employer’s behalf is outdated. While over a third (36%) say they have clashed with their employers over extended reimbursement timelines.

James Keating, CMO at Pleo, commented: “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.”

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