Payroll Giving On The Agenda

Alongside Government plans to conduct a full public consultation into payroll giving later this year, its Behavioural Insights Team (BIT) will now start to test new ways of stimulating payroll giving by employees, including encouraging them to commit to giving money when they get a pay rise.

Over the next couple of months, the BIT will work with large organisations to trial different ways of encouraging payroll giving, including prompting employees to sign up to it at the same time that they sign other pieces of office paperwork and testing whether encouraging employees to commit to giving money when they expect to get a pay rise is more effective than tackling them on the day they receive it.

The BIT was established in July 2010 and the function of the team is to influence British policies through insights from Behavioral Economics in order to achieve the Government’s goal of finding “intelligent ways to encourage, support and enable people to make better choices for themselves”.

Having collated the results of the current test, the BIT hopes to get results by the end of the year, by which time the consultation in to payroll giving should be underway, as the promise was that it would start before Christmas once the Gift Aid Small Donations Scheme is up and running.

Working with agencies such as the Charities Aid Foundation (CAF), which runs Give As You Earn, the biggest payroll giving scheme in the UK, the Government has stated that it is determined to “get serious” about payroll giving.

CAF itself is also due to publish a piece of research later this year into payroll giving, focusing on what lessons have been learned since it has been in existence.

As an accountant, Simon Denton specialises in providing PAYE advice, support and guidance.

Posted in News.