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Switch to homeworking could save employees more than £4,000 a year

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Written by: Emma Lunn
05/10/2020
Remote workers save cash on petrol, car insurance and unpaid commuting costs.

Workers would gain back an average of £4,168 if they switched to homeworking permanently for a year, according to money.co.uk.

The financial website says some workers could be up to £6,800 a year better off if they worked at home for 12 months.

Money.co.uk’s study, entitled OK Commuter, looked at commuting costs such as petrol and insurance, as well as the time lost in unpaid commuting time.

It analysed average commuting time and salaries across the UK regions and found that homeworking is saving workers an average of 57 minutes a day in unpaid commute time, which equates to £272.95 a month in unpaid work.

The study comes as research by the Institute of Directors suggests that 74% of firms plan on maintaining the increase in homeworking.

According to the money.co.uk research, lockdown has seen more than three quarters (76%) of motorists reduce their annual mileage, with the average distance driven a year falling from 8,000 miles a year to just 3,000.

With the average cost per litre of fuel now sitting at 114p, and an average UK MPG of 35 miles per gallon, this means that on average, drivers can expect to save £742 a year on fuel costs, or £371.50 if lockdown continues over the next six months.

The reduction in annual mileage could also see UK drivers save on their insurance premiums, with an average saving of £150 for drivers reducing their journeys.

Salman Haqqi, personal finance expert at money.co.uk, says: “With more firms looking to extend home working or even make permanent switches to remote working for staff, some UK workers could be in for a surprise windfall in both tangible savings and unpaid commute time.

“On average, we spend 57 minutes a day commuting to our places of work, with those who drive, spending £743 a year on petrol costs to do so. Based on average salaries across the UK, it means we spend the equivalent of £4,168 in time on cars, trains and buses travelling to and from work every year.

“It remains to be seen to what extent firms across the UK will embrace remote working post pandemic. However, should the extended lockdown continue across the next six months as suggested, it could leave workers better off in both time and money.”

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