Over half of employees across the UK are working from home more often in a bid to cut costs, a survey shows.

Findings from BT Business show cost cutting is the main reason for this, with 88 per cent of respondents citing this as their reason for not travelling into the office.

"Anything employers can do to help their staff save money in the current climate is not only great for morale but can also have a big impact on performance," said Bill Murphy, managing director of BT Business.

Working from home is helping people stay out of the red, BT suggests, with 60 per cent saying they are now better off as a result of their change in working habits.

They also save an average of £10 to £20 per day through not having to pay for transport and refreshments.

CreditAction recently revealed that total UK personal debt at the end of February 2009 stood at £1,458 billion.

Furthermore, total secured lending on dwellings at the end of February 2009 stood at £1,227 billion.