The Great British Expense Scandal

Today a shocking report from PayCaptain has highlighted the significant hidden mental and financial pressures Brits are facing when it comes to covering expenses on behalf of employers against the backdrop of the rising cost of living. 

The report details how 40 percent have taken out loans or had to use credit cards as a result of paying for company expenses, with a further 37 percent remaining out of pocket after being reimbursed2. All of which is adding to financial strain, with a potential negative impact on credit card ratings and missed personal payments.

The results further highlight how British workers are being put under increasing stress as a result of covering business expenses. One in four British workers stated that paying for company expenses puts pressure on them paying essential bills, with one in five Brits having to skip meals, miss payments, or not buy day-to-day items due to having to pay for expenses4. This is particularly concerning for the 16-24 lower-earning age group, with one in six deciding to work from home and missing out on invaluable workplace-based learning as they cannot afford travel.

PayCaptain CEO, Simon Bocca says, “It’s shocking that UK businesses continue to expect employees to put themselves in challenging financial positions to cover company expenses, particularly in a cost-of-living crisis. Provisions need to be put into place to help safeguard workers when expenses are essential as clearly current archaic processes just don’t work. So many companies claim that their workforce is the beating heart of their operations, but this report shows that so many don’t offer anywhere near enough support.”

The findings underline the increasing issue of ‘In Work Poverty’1 in the UK, with 7.9 million working-age adults living below the breadline, and six in ten low-income households not being able to afford unexpected expenses.

It’s no surprise that a huge one third of Brits stated that paying for company expenses impacts their mental health3 and makes them feel anxious, with the 16 -24 age group particularly vulnerable. One in six say it negatively impacts their relationships, in addition to stresses for paying for daily essentials. And this has a direct impact on productivity in the workplace, as 94% of UK employees admit to worrying about money, with 77% saying this impacts them at work.

On average British workers have to cover expenses up to five times a month equating to an additional £273 in outgoings for expenses. Almost 20 per cent have to cover work related expenses up to two-four times a week, with a further 10 percent having to cover up to £4,800 annually.

Payroll solutions provider PayCaptain is on a mission to help businesses improve the financial resilience and wellbeing of their workforce. PayCaptain has launched a new ‘instant expenses’ reimbursement feature in response to the findings which highlight how 40 percent said the process of reclaiming expenses from their company is complicated and time consuming.

PayCaptain CEO, Simon Bocca says, “In response to this situation, PayCaptain has created a new instant expenses reimbursement feature, which will remove the financial and mental strain for employees. The new feature is here as a solution to the crippling situation we’re finding many workers in, and allows employers to better support their workforce in a proper way. Employers can now reimburse employee expenses in real time – helping to streamline outgoings, and minimise wait time and stress for employees when it comes to claiming for expenses.”

The new feature launches on PayCaptain in April and is available to progressive businesses looking to better support their employees and streamline the expenses process.

About PayCaptain:

PayCaptain is a multi-award-winning HR/FinTech company that delivers a fully automated cloud outsourced payroll service. The solution contains many unique and innovative features for employees, helping them to take control of their pay and increase their financial wellbeing. 

PayCaptain is a payroll solution that helps employers pay their workforce, regardless of income and personal circumstances. The solution incorporates functionality that’s specifically designed to positively impact financial resilience for people struggling with money, or vulnerable and low-income employees.

PayCaptain is the world’s first payroll company to be B-Corporation certified. It has been recognised and rewarded with two B Corp ‘Best for the World’ awards for being within the top 5% of highest scorers within both the Workers and Governance impact areas in the B Corporation B Impact Assessment.

In October 2022, PayCaptain was awarded the Chartered Institute of Payroll Professionals ’Software Product of the Year 2022′ at the CIPP Annual Excellence Awards.

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