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The Deep dive: Spend management in the UK

By Puja Sharma

January 23, 2025

  • B2B businesses
  • Business Expense
  • expense system
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Spend management, Business Spending, Expense Management, Budgeting, Expense Tracking, FinTech, UK, France, Germany, Europe

The deep dive’ is our bi-weekly exploration of a relevant topic, hot trend, or new product. For Prime subscribers only.

How does it work?

New research from embedded finance platform Weavr highlights a critical inefficiency in spend management systems, revealing that UK employees lose an estimated £690 million annually in unclaimed and unpaid expenses. Conducted via Censuswide, the study surveyed over 500 UK office workers and found that 81% had been left out of pocket by their employer for more than a month. The delays and inefficiencies not only lead to financial strain but also significantly impact employee morale and mental well-being.

“The days of outdated spend management practices are over,” said Weavr, whose research uncovers the shortcomings of traditional expense management systems used by small and medium-sized businesses. The report sheds light on how ineffective processes—ranging from delayed reimbursements to unclaimed expenses—are creating unnecessary financial stress for employees.

A staggering 63% of respondents reported losing money because their expense claims weren’t reimbursed, with 4% facing losses of £500 or more annually. Worse still, 11% said they encounter these issues frequently. Field workers were hit hardest, with 76% permanently losing money due to reimbursement failures. Such inefficiencies point to the urgent need for modernised spend management solutions that eliminate the burden on employees.

Who is under the radar?

Another concerning trend is the sheer volume of unclaimed expenses. A remarkable 75% of employees admitted to missing claims, losing an average of £90 each year due to overly complicated expense systems and confusing HMRC rules. These missed claims collectively cost the UK workforce £690 million annually—money that could have been saved with more efficient systems.

A Modern Solution to Spend Management

The report calls for a shift to smarter, employee-friendly spend management systems. Weavr proposes company-funded expense cards powered by embedded finance as a transformative solution. These cards enable employees to cover business expenses without using their own money, seamlessly integrating with tools like accounting software, travel booking platforms, and enterprise resource planning (ERP) systems.

This streamlined approach eliminates the hassle of tracking and submitting claims, reduces errors, and ensures compliance with expense rules. Employees no longer have to navigate cumbersome systems or wait weeks for reimbursement, while employers benefit from real-time data consolidation and improved process efficiency.

The benefits are clear:

  • Over 83% of employees believe such solutions would ease their cost-of-living challenges.
  • Around 77% say it would improve their job satisfaction.

By addressing the pain points of traditional expense management, businesses can boost employee engagement, enhance loyalty, and strengthen their reputation.

Why does it matter now?

Alex Mifsud, CEO and Co-Founder of Weavr, commented, “Traditional spend management systems often make employees feel like personal overdrafts for their employers, especially in today’s economic climate. Whether it’s delayed reimbursements or overly complex expense policies, the result is the same: frustration and a lack of trust. Modern, embedded finance-driven solutions provide the transparency, efficiency, and fairness employees need while helping businesses avoid the reputational damage caused by outdated practices.”

As organisations navigate a challenging economic landscape, embracing innovative spend management solutions is no longer optional—it’s essential. Businesses that empower employees with smarter systems can drive operational efficiency and foster a more engaged and satisfied workforce.

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