Report: Getting Workplaces Saving
The Financial Inclusion Centre has published a new research report called Getting Workforces Saving: Payroll Schemes with Credit Unions.
The report contains the findings from a two year project funded by the Money and Pensions Service (MaPS) designed to evaluate: the effectiveness of payroll savings in promoting positive savings behaviours and financial resilience amongst workers (with the emphasis on low income workers); and different ways of encouraging workers to sign up to payroll savings.
The project was undertaken with two major employers in the Yorkshire region (Leeds City Council and NHS York) and Leeds Credit Union (where the savings of participating workers are paid into).
The research concluded that payroll savings is effective at encouraging positive savings behaviours and promoting financial resilience amongst lower-medium income workers (earning £17,500–£24,999 a year). The research found these workers were typically saving £50–£70 a month.
Importantly, payroll savings is a relatively simple concept which could be scaled up given the right support and effort. Backing payroll savings could make a significant contribution to MaPS strategic goal of getting two million more people who are either squeezed or struggling to start to save by 2030.
The research report is accompanied with more than 40 policy recommendations for government, employers, credit unions, and other stakeholders designed to expand the take-up of payroll savings schemes.