Payroll savings: how to put money aside straight from your pay

On 14 November 2026 the government announced that over half a million more workers across the UK will be able to build their savings more easily and strengthen their financial resilience. The move is about workplace payroll savings — setting aside a slice of pay into savings automatically at source — offered by employers.

How does the scheme work?

Employees decide what proportion of their pay goes automatically into their own savings pot. Savings build up over time and can be accessed at any point without charge (£0). It is a quick, easy way to set aside a little money regularly that acts as a safety net when it is needed most.

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Which employers are taking part?

BT, Veolia, Marks & Spencer and Home Bargains have joined the government-backed National Coalition of Workplace Savings, where members agree to offer a payroll savings arrangement. They join Co-op, SUEZ, Bupa, OCS, Mitie, Greene King, Burger King UK and Travelodge. Tesco has also launched a payroll savings scheme.

Where did the initiative come from?

The coalition was initiated by the government's Financial Inclusion Strategy, supported by a landmark regulatory statement from the Financial Conduct Authority (FCA) to help employers offer schemes safely. The government is also committing to remove barriers, including a factsheet on how savings schemes work within National Minimum Wage rules.

What should workers do?

If your employer is in the coalition or launches a scheme, ask HR how to opt in and what proportion you can save. It is voluntary, the money stays yours and can be withdrawn without penalty. The plan sits alongside regulating Buy-Now Pay-Later products and expanding bank-account access for people experiencing homelessness.

Any savings decision is yours; this article is for general information and is not financial advice.

How is payroll saving different from a pension?

This distinction matters. Workplace pensions are for the long term, and the money usually cannot be taken out before pension age. Payroll savings, by contrast, are a flexible short-term buffer: the funds stay liquid and can be withdrawn at any time without charge. One does not replace the other — savings help with unexpected costs such as a broken appliance or a sudden bill, while a pension provides income in later life.

The government's stated aim is to give families breathing space and financial resilience, with over half a million more workers now gaining access. If your employer does not yet offer such a scheme, it is worth asking — the coalition is open to new members, and the government has promised to remove red tape for companies.