Rising UK energy prices may kill work-from-home aspirations. Here's why

Due to the increasing energy prices and the consequent 80% higher energy cap announcement by Ofgem in UK, employees would require an additional £900 more a year earning to afford work from home.

Agencies
Amid the already increasing energy prices, analysis suggests that work from home will add over £2,500 a year to the energy bills.

Because of the added cost, employees doing work from home are likely to return to offices in large numbers this winter as per expert suggestions. On Friday the energy regulator, Ofgem, confirmed that the energy will jump to £3,549 a year( an 80% increase) this October.

According to Cornwall Insight’s new forecast, in January next year, the energy bill would rise to £5,400 a year and by spring 2023, it’ll rise again to £6,000 per year.


So in January, the average monthly bill will hit £789 for employees doing work from home while for office-going workers it’ll be £580, according to a comparison from Uswitch. And this comes down to £2508 a year more energy bill for an employee doing work from home.

An estimate from Uswitch revealed that an employee doing work from home uses 25 percent more electricity and 75 percent extra gas than those 5 days week office going people.

And due to the rise in energy prices, daily use of household devices when working from home can add hundreds of pounds to the energy bills.
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Some energy bills estimates for work-from-home employees: Calculations based on Citizens Advice
• 8 hours a day of desktop running will cost £35.68 a month
• £23.42 a month for cooking using an oven.
• £8 a month to energy bills for three times a day kettle boiling

Though office returning means adding toward daily traveling costs, still it would cost £1,500 less.
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According to calculations done by Renny Biggins belonging to The Investing and Saving Alliance trade group shows that though an additional £700 a year would be the cost for employees doing work from home but to cover the cost a basic rate taxpayer would require an additional £900 a year earning.

He said that 'commuting cost and work in a warm office' may prove to be more economical even with high train and fuel costs due to energy prices.
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