Do you work from home? Since Covid lockdowns forced many office workers to set up at home, lots of companies have adopted a flexible approach to working, whereby employees can work remotely on some days and come into the office on others, or even WFH full-time for the foreseeable future.

Of course, working from home has its benefits – such as getting more time back to yourself that would otherwise be spent commuting, being able to do chores and life admin during breaks, and saving on the cost of your commute and/or lunch and coffees. But remote working isn’t completely free of cost either.

With energy prices soaring – Ofgem announced that the energy price cap will rise to a hefty £3,549 a year for ‘average households’ from October – most of us are worried about money. And for the quarter of the British workforce who work from home more often than not, there are concerns about how this might affect our bills. 

The price of running a boiler, water, electricity and inflated prices for broadband could reach £30 a day, according to analysis by The New Statesman. 

At the new tariff of 15p per kilowatt hour, running a typical 24kW boiler, the type found in most flats, would cost £3.60 an hour at full power. A computer running at 300 watts for eight hours will come to £1.25 a day at the new rate of 52p per kilowatt hour.

While we might not have the heating on during warmer months, the government’s data shows that when someone is at home all day, the property is heated for a median average of eight and a half hours a day.

For a poorly insulated home with an old boiler, these costs could reach £30 a day during the winter. Of course, not all of this energy use will be down to purely working from home, as the heating will likely be on in the mornings and evenings whether you’re working at home or in the office, but it’s been reported that staying at home during work hours could add £209 a month to already soaring bills.

But it’s not like commuting isn’t without its costs either. Train tickets don’t come cheap, and neither does petrol. But, depending on where you’re travelling from, some journeys might work out cheaper than the cost of WFH.

The typical rail season ticket now costs £3,263 per year, meaning you’d be paying £12.55 per day if you commuted in every day of your 260 days of work. Bus fares and London Underground tickets have increased by the largest amount in a decade (nearly 5%) as TfL recovers from the pandemic.

If you buy a travelcard for zones 1 and 2, you’d be paying £147.50 per month or £1,536 for an annual pass, which comes to £5.91 per work day, while for all zones it’s £270 per month (£10.82 per work day).

Bear in mind that even though the priciest travel card might be less than the £30 a day projected for WFH, there is also the additional cost of any lunches and coffees you might buy. Plus, household bills can be shared, it’s unlikely personal commute costs will be.

Either way, it’s an expensive endeavour. So what’s a worker to do? We spoke to some experts to find out what our options are.

Business psychologist Dannielle Haig says workers are left with a tough choice. She tells Stylist: “For some, that will mean they have to return to the office in order to afford to work. Commutes are also expensive, so perhaps it may be cheaper to work from home without the cost of commuting even with the uplift in electricity bills; however, everyone has their own dynamics and financial situations to navigate.”

In this case, there may be a conversation to be had with your boss. She says: “If neither are an option then it may be worth having a discussion with your employer to try and come to a compromise with regards to financial uplift on salary, a bonus of sorts or an alternative way of working that eases the financial burden of work. It’s always useful to remember that businesses will also be having huge increases in overheads, and smaller and medium-sized businesses may not be able to afford to increase salaries or cover the cost of your commute.”

Ros Jones from the The Business Wellbeing Club says that while it shouldn’t be this way, we might have to make personal choices that reduce how much energy we use if we want to keep working from home.

She says: “It’s so important that we continue to look after our wellbeing. If people are working from home and are concerned about the impact that will have on increased energy bills, you can try keeping warm by wearing more clothing, drinking hot fluids, getting up to move and stretch out from time to time, shutting windows and doors and all the usual things you’d do to keep warm. 

If you own your home, there are potential improvements that could improve the building’s energy efficiency. “While it’s still summer, perhaps it’s also a good opportunity to take a look at your home and see what can be done to reduce heat loss from a structural point of view, whether it’s windows, the roof, insulation or even solar panelling – and there may be grants available for significant work to help reduce energy costs.”

Equally though, your employer might be able to help, perhaps with a WFH stipend. She says: “If your employer no longer provides a workplace for you to go to and is requiring you to work from home, speak to them. It would be reasonable for you to ask for financial assistance to cover costs of increased energy bills resulting from you working from home.”

If your employer does not have an office or you are required to live far away from the office, you may be entitled to tax relief on expenses such as business phone calls and energy bills.

Nicola Hemmings, head of workplace psychology at Koa Health, a digital mental healthcare provider, agrees with this point. She says: “Communicate your financial concerns to your employers. Flexibility around wages can help; some companies have allowed staff to sell back unused annual leave, while others are making use of tools and technology which offer staff instant access to earned pay.

“Alongside this, HR leaders can offer practical advice and support to navigate the crisis and the stress and anxiety associated. For example, HR leaders may be able to provide access to a ‘knowledge hub’ for financial aid and resources (financial clinics or advice forums). They may also partner with third-party external advisers who can bring in more support.”

Working from home has many advantages over the office, but with the costs associated with both going up, it’s time to consider which one makes you happiest. Is there a compromise? Are there things you can do to mitigate your costs? You might opt for a hybrid situation, but maybe it means taking lunch to work on the days you’re in office to save money. Ultimately, it’s about finding a solution that works for you without breaking the bank.

Images: Getty