Household bills
[ch 7: page 38]Many employers contribute to the homeworker’s bills for heating, lighting and electricity. It is also usual for the employer to cover the cost of all work-related phone calls.
A homeworking policy should outline how the costs are calculated — for example, whether the employee has to provide proof of bills or does the employer simply pay a monthly or annual flat rate towards the cost of heating and lighting. How much is paid will be a matter of negotiation.
At one insurance company, contractual homeworkers receive a monthly payment towards the cost of running a home office, to compensate for the lack of a subsidised staff restaurant, and towards the cost of cleaning protective clothing.
Some employers offer homeworking allowances. This is a contribution towards the extra fuel and insurance costs that may be incurred through homeworking, and as compensation for the inconvenience of loss of living space. This allowance is taxable (see section on tax, page 41).
During the pandemic, Citizens Advice agreed with union reps to give each employee a grant (up to £250) to buy necessary equipment or office furniture, and a £48 homeworking allowance.