Payroll savings schemes allow staff to save and pay back loans directly through their payroll, building their financial resilience whilst also boosting the resources of the credit union. Payroll Savings has been identified by the Church Credit Champions Network as a key strategic priority, and organisations such as Linklaters, St Paul’s Cathedral and the Financial Services Compensation Scheme have already set up schemes as a result of Network activity.
North Middlesex Hospital is another organisation that has set up a payroll savings scheme for its employees. Around 30 people have already signed up, with new enquiries every week, and £50,000 has been lent out to staff
Dominic Fenton, chaplain at North Middlesex Hospital explains how the partnership between the local credit union and the hospital was established:
'I first read about the North London Credit Union in the London Diocesan monthly mailing and wondered whether it could help staff in my organisation, some of whom I know to be really struggling on low incomes. I made appointments to talk with our Director of Human Resources and our Deputy Director of Finance to see what might be possible. Once I had re-assured them that the Credit Union was bona-fide and not run by loan sharks [!] , they agreed to invite the Credit Union on site.
Representatives from NLCU visited the Trust on several occasions, set–up an information booth in the main Atrium and provided staff to offer advice and support. Thus a partnership was formed between the Trust and NLCU offering ethical loans and savings products, monthly payments for which are deducted from salaries at source.
Currently, significantly more than £50,000 has been lent to staff, creating great savings in the process. NLCU is now permanently marketed by our HR dept as a benefit offered both to existing and new members of staff and we have had very positive feedback from those enrolled in the scheme'.
Peter Lovell, MBE, CEO of North London Credit Union:
“We were delighted to start working with North Middlesex University Hospital, who have been very supportive. We are very grateful to Dominic for his efforts on our behalf.
Credit unions have a long history of helping employers to look after their staff. Such partnerships offer real benefits to everyone involved, meeting many employers’ CSR goals, as well as reducing stress-related absence and leading to higher productivity. Employees get an easy, safe and confidential way to save and access to low-cost loans should they need them. Credit unions gain access to new members, helping us to grow and to further support our local communities.”
Organisations in the Church Credit Champions Network (CCCN) pilot areas of London, Southwark and Liverpool can contact a local coordinator to discuss exploring a partnership with a local credit union.
The Chartered Institute of Payroll Professionals (CIPP) promote payroll saving and give advice to organisations wanting to set up a scheme for their employees.