Why expense systems are failing UK staff in 2025

A new Airwallex report–Reimbursement Frustrations–has highlighted the growing disconnect between employee expense expectations and reality in the UK, with outdated reimbursement processes now creating measurable financial strain for many workers—and increasing risk for employers.

The findings, based on a 2025 survey of 2,000 UK employees, reveal that 43% of workers have encountered financial difficulty while waiting for expenses to be reimbursed.

This figure rises to 66% among those who incur costs monthly. Delays in reimbursement are affecting workers across all income brackets, including half of those earning more than £100,000 a year.

Despite the widespread adoption of digital expense tools, 37% of respondents said their current reimbursement system is not fit for purpose, and over half expressed a desire for a better solution.

Reimbursement Lag Undermining Employee Wellbeing

The survey data suggest that reimbursement processes remain a weak point in workplace operations.

Only 30% of respondents said they were typically reimbursed within one working week, although nearly 40% believe this should be the standard.

More than a quarter of lower-income earners (those earning £10k–£20k annually) reported waiting over a month for reimbursement.

This delay is having real-world consequences. A fifth of all employees surveyed said they have experienced financial strain more than once due to slow repayment following work-related expenses.

Among 18–34 year olds, 59% reported hardship related to reimbursable costs.

Expense Burden Varies by Role and Region

The frequency and value of expenses vary widely across income groups. While the average employee spends £4,255 annually on business-related costs, nearly one-third of high earners (earning over £100,000) reported annual expenses exceeding £20,000.

London-based employees are the most likely to front costs—68% said they routinely pay out of pocket—compared to just 24% in the South West.

Workers in the North East and London reported the highest levels of financial strain due to expenses.

The data also highlight growing reliance on credit and personal networks to bridge reimbursement gaps.

Over 40% of respondents said they had used a credit card to cover expenses, while 45% of those earning under £30,000 reported borrowing from friends or family.

Business Risks and Operational Impacts

Beyond personal impact, the report points to broader risks for employers. Long waits for reimbursement were found to correlate with increased frustration and disengagement.

Over 40% of employees earning less than £30,000 reported feeling frustrated or worried during reimbursement periods.

More concerning still, 12% of respondents said they had skipped work events to avoid upfront expense commitments, and 13% of younger workers (aged 18–34) said they had left a job due to expectations around self-funding work expenses.

Delayed reimbursements can also complicate expense tracking, impact cash flow forecasting, and increase compliance risks—particularly for fast-growing or international businesses.

Barriers to Change

Despite recognising the potential of automation and digital solutions, most firms are not investing sufficient time in implementation or training.

The report notes that just 8% of company time has been spent deploying new technology, and only 9% on upskilling teams to use it.

Even as 85% of businesses reported some level of benefit from AI in expense processes—currently resulting in a 9% time saving—barriers remain.

Nearly half of surveyed professionals said they are still unclear about how AI could help in their specific role, and 28% cited staff resistance as a roadblock to adoption.