A recent decline in money raised and employee participation in payroll giving schemes is continuing, according to latest HMRC figures.

The data for 2023 shows a £1m fall in money raised through the schemes, where staff donate to charities through their salaries, compared to the previous year.

Last year £127m was raised, compared to £128m the previous year.

This is the second lowest level since HMRC compiled payroll giving stats in 2015, when £126m was donated.

The most pronounced fall was between 2021 and 2022 when £9m was shaved off the amount donated through such schemes.

A decline in staff taking part over the last four years is also continuing.

While in 2020 591,000 took part, this has fallen each year since with just 483,000 involved in 2023.

Philippa Cornish, head of corporate clients at Charities Aid Foundation (CAF), which runs the pay roll giving scheme Give As Your Earn, has described the decline as “concerning” as such schemes provide charities “with a reliable and regular income - particularly as many face funding challenges”.

She urges government, providers and employers to work to together to better promote schemes, particularly to young workers.

“Our research shows there are clear opportunities to turn this downward trend around, with young people especially likely to say they would use such a scheme if it was offered,” she said.

“Despite the benefits for a responsible business, fewer employers are now offering payroll giving to their staff. That’s why we would like to see a renewed and joined-up focus on promoting payroll giving from providers, employers and the government."

Research released last year by CAF found confusion among staff around payroll giving. Two in five did not know if their employers offered the opportunity to donate through their salary.

Tax relief rise

HMRC's figures for the tax year up to April 2024 also show that tax reliefs for charities and donors were up 3% year on year and now total £6bn.

Estimates for the largest tax reliefs include £2.56bn in business rates relief, which is up 6%.

Also, last tax year £1.6bn in Gift Aid was paid to charities, which is no change from the previous year.

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