UK employees are failing to take annual leave, with almost two- thirds of staff not using their holiday allowance.

Findings from the Chartered Management Institute (CMI) show almost half of employees are losing up to two weeks’ holiday every year – saving employers £3,500 million a year.

More than half of new fathers aare also failing to take their full two-week paternity leave, according to studies from ING Direct bank, which show 58% take less than a week off.

Jo Causon, director, marketing and corporate affairs at the CMI, said: ‘Britain continues to operate a long-hours culture but it is clear that employees are not afraid to work at this level providing they feel valued and are allowed to work more flexibly.’