The number of MPs who donate to charities through payroll giving is lower now than before the general election, according to data obtained by Civil Society through a freedom of information request.
Seven MPs now donate to charities through the Give As You Earn scheme, which amounts to just over 1% of the 650 politicians that sit in the House of Commons.
This is down from the 13 MPs who donated through the scheme, run by the Charities Aid Foundation (CAF), last year, and 14 the year before.
The Independent Parliament Standards Authority, which has set and administered members’ salaries since 2011, said that of the seven MPs currently using the scheme, five are from Labour and two are from the Conservatives.
Payroll giving at lowest for eight years
MPs’ basic annual salary, as of 1 April 2024, is £91,346. MPs also receive expenses to cover the costs of running an office, employing staff, having a place to live in London or in their constituency, and commuting between parliament and their constituency.
Payroll giving allows employees to set up charitable donations directly from their wages to charities of their choice.
HMRC’s UK charity tax relief statistics show that employees donated £127m through payroll giving in 2022-23, the lowest amount since 2014-15 and down from £128m in 2021-22.
This meant that money from this source dropped to its lowest in eight years.
Lower levels of payroll giving ‘concerning’
Philippa Cornish, head of corporate clients at CAF, said: “We hope that with the new intake of MPs, more will take advantage of the valuable benefit offered by payroll giving to support hardworking charities in our communities.
“Give As You Earn is easy, tax- effective and flexible, and provides charities with a reliable and regular income.
“It is concerning that we are seeing fewer employers and employees are using payroll giving, particularly when charities are facing funding challenges and increases in demand.
“That’s why we would like to see a joined-up focus on promoting payroll giving from providers, employers and the government – and parliament would be a great place to start.”
