Work-related expenses such as childcare, commuting, work clothes and computer equipment cost the average full-time employee £2,681 per year, accounting for 12% of their disposable income, the report found.

Although average salaries have risen by around 1.4%, the average cost of working has also increased by 10% over the past year, leaving workers significantly out of pocket, the bank said.

Santander surveyed full and part time workers to ascertain how much they spend on all work-related products and services that they cannot claim back.

It found commuting is the greatest cost to workers, with the average annual outlay now at £785 per year, up from £766 a year ago.

Those who drive to work spend £955 a year on travel, with £835 spent on fuel and £82 on parking charges. People who use public transport to get to work spend slightly less money at an average of £927 per year.

Childcare is also a substantial cost burden for one in five (19%) workers, who spend an average of £3,656 per year on it, up from £3,632 last year.

Alan Mathewson, CEO of Santander Cards, said: “Earning a living can be an expensive task, particularly against a backdrop of rising living costs. The price of going to work has increased significantly since last year but average salaries have not and, as a result, workers are considerably worse off.

“There are a number of small changes people can make to their day-to-day routine that will help counterbalance these rising costs; by seeking out the best deals at the supermarket or department store and making the most of discounts and cashback offers.”