Payroll Giving was introduced in 1987 to make tax-effective charitable giving simpler and more attractive to wider range of donors. At the time,the main method of tax-effective charitable giving was through a deed of covenant, committing an individual to make donations for at least three years.

Payroll Giving will now allow an individual to make a tax-free donation to charity direct from their pay or even pension. This current net worth is £120 million a year to charities. However only 2% of employers offer this scheme with approx. 3% of employees making a regular charitable donations.

The Government is committed to raising levels of Payroll Giving. The system has provided substantial amounts to charities but has not worked as well would have been hoped. Now they are looking at how the system could be reformed, both to increase take-up and encourage giving as a social norm through he scheme.

They would like to hear from charities including Payroll Giving agencies and other organisations with interest in Payroll Giving, such as Private Fundraising organisations, as well as donors, employers and payroll service providers.