Government spending cuts have led increasing numbers of UK firms to cut costs by encouraging staff to work from home.

The current number of 4.3 million home workers in the UK is expected to skyrocket to 6.2 million by 2012.

Many corporate giants, including BT, Transport for London and Microsoft already employ hundreds of remote workers, thus saving on office space and allowing employees to slash commuting costs.

BT has said in the past that home workers are 20 per cent more productive than those working in the office, due to a lower level of distractions. Absenteeism has also been reduced by 60 per cent amongst home workers.

Littlewoods (now known as Shop Direct) employs more than 800 home workers all across the UK. They plan to add 1,000 more remote staff next year.

Home working allows workers to adopt a more flexible lifestyle and is also a fantastic option for disabled people who may otherwise not be able to get into the office to work.

Ken Sheridan, co-founder of Remote Employment, a UK jobs website said, “It is possible to convert many business functions to remote working and more and more firms are exploring the possibilities.

“When properly set up it’s a brilliant win-win for both employer and worker,” he added.