A new report from absence management platform Timetastic has revealed that thousands of UK workers are failing to take the annual leave they’re entitled to, highlighting a growing work-life balance crisis that is impacting both mental wellbeing and personal finances.
The research comes as UK Google searches for “signs of burnout” have surged by 150% in the past year, underlining the scale of the issue.
The Britain’s Work-Life Balance Report, based on analysis of Timetastic’s database of over 180,000 employees, highlights that while UK workers are legally entitled to 28 days of annual leave including bank holidays, a total of 26% of employees had more than 15 days of untaken leave by the end of the year, equating to three full working weeks of lost rest. Only 18% were found to have used their full allowance.
Sarah Crammond, Customer Success Expert at Timetastic, says the scale of the problem demands attention: "Taking time off isn’t just a perk, it’s essential for productivity, creativity, and mental wellbeing. But many workers still feel unable to fully switch off, which is having a major effect on employee engagement, long-term business performance, and overall wellbeing."
Speaking to Timetastic about the findings, Dr Ravi Gill, Practitioner Psychologist and Workplace Wellbeing Consultant at Smart Mind Health, explains that psychological barriers play a significant role in this behaviour, commenting: “One of the most common barriers is workplace guilt. Many employees feel they are letting their team down or increasing pressure on colleagues by being absent. This is particularly strong in high-responsibility or caring roles, where people may feel a heightened sense of duty and accountability.”
“Another key barrier is presenteeism culture, which is the belief that being constantly available equates to being committed or high-performing,” she added. “In environments where overwork is normalised or subtly rewarded, taking leave can feel like a sign of weakness or lack of dedication. The ‘hustle culture’ within modern society promotes this."
The consequences of skipping annual leave extend beyond fatigue. The report outlines significant mental health risks, with prolonged periods without rest linked to burnout, reduced cognitive performance, and emotional exhaustion. Dr Gill noted: “Taking annual leave is essential for psychological recovery as work places ongoing demands on the mind and body, activating stress systems. Time off allows these systems to return to baseline, reducing physiological strain. Without adequate recovery, stress accumulates and can lead to longer-term health consequences.
“Not taking regular leave increases the risk of burnout, which leads to emotional exhaustion, depersonalisation, and reduced personal accomplishment. Research consistently shows that insufficient recovery time is a major predictor of burnout, as individuals are not given the opportunity to replenish depleted emotional and cognitive resources.”
The financial implications are also significant. Workers who fail to take their leave in companies where days cannot be carried over are effectively losing part of their salary. For someone earning £30,000, leaving 15 days unused could mean forfeiting £1,731 in earnings, whereas someone with a higher yearly earning of £60,000 could lose £3,562.
Even when workers do manage to book time off, there is no guarantee they will take it. Out of more than 372,710 holidays booked via the platform in 2025, the report found that nearly one in five bookings are ultimately cancelled and that 19.9% of planned leave does not go ahead, despite workers submitting leave an average of 127 days in advance.
Crammond warned that this trend may signal deeper organisational issues. "Frequent holiday cancellations can sometimes indicate deeper workplace issues, such as understaffing or an inability for employees to step away from their responsibilities, which need to be addressed. By identifying patterns in cancelled leave, businesses can uncover where teams may be under pressure or lacking adequate cover, and take steps to resolve this.”
