UK Workers Forfeit Up to £3,462 Annually in Unused Holiday Pay
Workers across the United Kingdom are missing out on substantial sums, with potential losses reaching up to £3,462 per year due to unused holiday pay. According to a comprehensive report from staff leave platform Timetastic, over one-fifth of UK employees do not take all of their entitled annual leave, highlighting a significant issue in workplace practices.
Widespread Unused Leave and Financial Impact
The 2026 Annual Leave Report by Timetastic reveals that more than a quarter (26%) of workers end the year with over 15 days of unused holidays. Most employees are legally entitled to 28 days of annual leave from their employers, yet many fail to utilise this benefit fully.
The financial consequences are stark: a worker earning £20,000 annually who leaves 15 days unused loses £1,154 in holiday pay. For someone on a £35,000 salary, the loss escalates to £2,019. In extreme cases, this can amount to as much as £3,462 per year, representing a considerable financial setback for individuals.
Cultural Pressures and Guilt Factors
Sarah Crammond from Timetastic commented on the underlying causes, noting that while senior leaders may have more control over their schedules, newer entrants to the workforce face a culture where "always-on" availability is often misinterpreted as commitment. She explained, "It suggests that while younger workers value their wellbeing, they may still feel the weight of traditional work ethics that prioritise 'grind' over recovery."
The report further indicates that one in ten employees feel guilty for taking their earned leave, and 42% say their decision to take time off is influenced by workload pressure. This points to a pervasive issue where workplace demands overshadow personal well-being and legal entitlements.
Calls for Stronger Employment Protections
TUC General Secretary Paul Nowak has previously emphasised the importance of breaks, stating, "We all deserve a break from work to spend time off with our friends and family." He highlighted that more than a million working people have been deprived of paid leave they are due, with hundreds of thousands denied basic rights like minimum wage payments.
On the proposed Employment Bill and Fair Work Agency by the new government, Nowak added, "Good employers have nothing to fear as they're already playing by the rules. Now it’s time to level the playing field. Labour’s Fair Work Agency must have real teeth and hold rogue employers who think they are above the law to account."
This situation underscores the need for enhanced enforcement of employment rights to ensure workers can fully benefit from their entitled leave without financial or cultural penalties.
