Today is National Work from Home Day, when it is expected that five million people will be taking part. And with organisations discovering in these straitened times the cost and productivity benefits of home working more of us are doing it, according to TUC research.

The number of UK employees working from home (excluding self-employed) has increased by almost a third, or 31.8 per cent, over the last decade to 2008. More than 3.5 million people work from home, representing 12.3 per cent or one-in-eight of the population, an increase of 650,000 since 1997.

Regionally, the highest growth in the past decade has been seen in the East Midlands with 48 per cent, followed by the South West with 47.2 per cent, Yorkshire and Humberside with 41.0 percent and the West Midlands with 39 per cent.

The highest proportion of home workers is in the South West with 15.4 per cent, followed by the South East with 14.5 per cent and Eastern England with 14.2 per cent. The lowest is in Scotland with 9.1 per cent, followed by the North East with 10.0 per cent.

"Phil Flaxton, chief executive of Work Wise UK, organisers of National Work from Home Day, now in its in fourth year, said: "In a tough economic climate many businesses are reaping the benefits of employees working from home. Not only can they save through cutting office space overhead costs, but reducing commuting time and stress also helps boost productivity.

"Additionally, should swine flu become a serious pandemic home working could help limit its spread while allowing people to continue working.

"There are also the benefits of reduced congestion and emissions arising from cutting journeys, as well as enabling people to work more flexibly and improve their quality of life."

Brendan Barber, TUC General Secretary, said: "As the recession puts the squeeze on company finances, encouraging staff to work from home is a great way to save money and offer a better work-life balance. Working from home can save on office rent, energy and transport costs, making it an attractive solution for employers and their staff during the recession."

The growth of internet enabled smart working practices like home working have allowed most business to cut their office space requirement by a quarter, according to a study by the British Council of Offices.