HM Treasury - Consultation on Payroll Giving
Many credit unions are seasoned in providing payroll deduction facilities through which they collect contributions to savings and loan repayments. As such we would like to support the proposal to open up the Payroll Giving Agency (PGA) market to non-charities. Given credit unions’ success in the field for their own purposes we feel that the credit union sector could play a role in increasing competition in the PGA market and thereby increasing this potentially valuable source of charitable giving.
With the Credit Union Expansion Project due to launch in May, we also anticipate that the collaborative systems and processes which the Project will develop should further enhance the role credit unions can play in the PGA market. Similarly, credit unions’ involvement in providing the service could create a valuable new revenue stream for the sector. Likewise it would encourage Payroll Giving subscribers to also begin saving or accessing other financial services via their credit union enhancing the drive towards expanding the sector and building a fully-sustainable business model while boosting the financial resilience of those donating. There is potential here for a virtuous circle of greater financial well being leading to greater charitable donation which would benefit all parties.
The full response is available to download on the right hand side.