New research from Aldermore bank1, asking 4,000 UK adults about their savings habits, reveals that the divide between those returning to the office and those able to work from home is creating a significant savings gap.
UK adults are finding that even small savings gained by working from home are adding up quickly, and over time are providing big saving rewards. While working from home can come with increased costs, such as higher heating and electricity costs, the costs associated with going to the office can be considerable. The biggest savings include on average £30 per week from not commuting to and from work, £21 on not spending as much on breakfasts and lunches, £23 on not socialising with work colleagues in person, £18 by avoiding takeaway coffees, and £23 on not going out on weekdays after work. All these savings accumulate to an average total of £2,964 over a period of six months working from home.
| Saving | Average weekly saving | Average saving over six months |
| Saved from not commuting as often | £30 | £780 |
| Saved on lunched/breakfasts | £21 | £546 |
| Saved by not attending work drinks/events/socialising with colleagues in person | £22 | £572 |
| Saved on takeaway coffee/teas | £18 | £468 |
| Saved on not going out as much after work during the week | £23 | £598 |
| Total | £114 | £2,964 |
Currently, only a small proportion are able to maximise the cost saving benefits of working from home, while many are experiencing increased costs associated with returning more regularly to their pre-covid places of work. At the moment, only one in six (16%) work from home full time, with one in ten (10%) working one or two days in the workplace, and 13% working three to four days. Three in five (61%) are working zero days at home.
| Working from home days | % of UK adults |
| Work from home entirely | 16% |
| Work from home 4 days a week | 5% |
| Work from home 3 days a week | 5% |
| Work from home 2 days a week | 6% |
| Work from home 1 day a week | 7% |
| Do not work from home at all | 61% |
| Average | 27% (1-2 days a week WFH) |
With one in four employees during the pandemic being placed on furlough2 at some point between March 2020 and June 2021, the economic impact has been considerable. Nearly two in five (38%) UK adults placed on furlough said it had a hugely negative impact on their finances, and 41% say their finances are not yet back to pre-furlough levels. Of those placed on furlough during the pandemic, almost two thirds (63%) say they are actively trying to rebuild their financial situation to what it was pre-pandemic.
Ewan Edwards, director of savings at Aldermore, said: “The pandemic undoubtedly had a significant impact on many people’s finances and, with the increasing cost of living and rising expense of returning to the workplace, many are seeing continued financial strain as we return to normality. It’s a critical time for people to stay engaged with their finances, so if any changes occur to outgoings, this can be managed and planned for.
“Subsequent lockdowns meant many people in the UK focused more on savings, due to lower expenses working from home, but as working circumstances change it’s important to keep up regular savings routines to ensure good long term financial health. Little savings here and there can add up over time to big rewards. Not leaving spare cash dormant in a current account but instead finding a savings account which suits your personal 2022 savings goals will ensure your cash works harder for you.”
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1Research conducted, on behalf of Aldermore bank, by Opinium, with a sample size of 4,000 UK adults ages +18.
2 ONS furlough data An overview of workers who were furloughed in the UK - Office for National Statistics (ons.gov.uk)
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