Do I have to pay an allowance to employees working from home?

A study by Energy Helpline has indicated that people working from home amid the coronavirus pandemic may see their winter energy bills rise by a fifth. This means that a typical household energy bill could potentially increase by up to £107 for those working at home five days a week. But are employers required to pay for this?

It would mean an overall increase in household energy bills of £1.9bn between October and March. While rules say employees who are asked to work from home can request a £6 a week allowance from their employers to cover any extra costs, there is no statutory obligation for employers to agree

If, as an employer, you do not wish to pay this cost, you can let employees know that instead they can go to the HMRC portal to reclaim the related tax relief through an adjustment to their tax code. See https://www.gov.uk/tax-relief-for-employees/working-at-home for more information and access to the portal.

However, you should note that the £6 per week allowance is only applies where employees are asked by the employer to work from home - not for employees who have requested or volunteered to do so.
Posted on 05 Oct 2020
< back
Cherington HR Limited is registered in England and Wales Company No. 5780092. VAT No. 879 0946 64. Registered Office: Cherington House, Mulberry Drive, Upton upon Severn, Worcester, WR8 0ET, England.

The cheringtonhr® name and logo are UK registered trade marks owned by Cherington HR Limited.