Workplace savings schemes to reach more than half a million additional workers

More than half a million additional UK workers will have access to workplace savings schemes as employers including BT, M&S, Veolia and Home Bargains join the government-backed National Coalition of Workplace Savings.

The schemes allow employees to choose a proportion of their pay to be transferred automatically into their own savings pot. Money builds up through regular contributions and can be withdrawn at any time without charge. Access to a scheme does not oblige workers to participate.

Coalition members agree to offer payroll savings arrangements and encourage staff to use them. The four employers join Co-op, SUEZ, Bupa, OCS, Mitie, Greene King, Burger King UK and Travelodge. Tesco is also working closely with the coalition and has launched a payroll savings scheme.

The Government’s aim is to help workers build a financial cushion for when they need it. The coalition grew out of its Financial Inclusion Strategy, alongside a Financial Conduct Authority regulatory statement intended to clarify how employers can offer the schemes safely.

The Government has also committed to tackling barriers that prevent employers from introducing payroll savings. It is working with businesses on a factsheet explaining how schemes should operate within National Minimum Wage rules, giving employers greater clarity about their obligations.

The initiative sits alongside measures to regulate Buy-Now Pay-Later products to protect people from problem debt and an expanded partnership between banks and charities to help people experiencing homelessness open bank accounts. The Government is also developing a new approach to credit file reporting for domestic abuse survivors coerced into taking on debt, with the aim of helping them rebuild their creditworthiness and financial independence.