My take (especially now broadband is so much cheaper etc) is that most homeworking costs are more than offset by saving in travelling to work costs. Net most people are better off. (by the same token the business saves office expenses) However I am aware that some businesses (particularly public sector) do pay a small fixed amount

And an old thread for you

www.cipd.co.uk/.../299825

I agree with Keith, and particularly if you apply a notional cost to the time save by not commuting too.............

Thank you for all your advice surrounding expenses, will go down the route of the savings in commuting offset against allowances.

With regard to providing furniture, if we hire a permanent homeworker we don't provide furniture just IT equipment and phone (made clear during the recruitment process). However in the instance of where the business has made the decision to make them a permanent homeworkers would you make a contribution towards the furniture if requested and if so what amount would you recommend.

Currently the affected employees work regularly from home around 2 days per week, not always but most of the time. So really they should have a suitable workstation set up. This could be a H&S issue if they haven't got an appropriate workstation and I was thinking of recommending to this employee that they should work from the office until this workstation is set up and that it should be set up by the 1st October (when they become perm homeworkers) and send them a homeworking assessment to carry out to assess that their workstation is suitable.

Would welcome your thoughts as never been in this situation before.

Many thanks

Liz