evaluation
Evidence type: Evaluation i
Information about the programme design and rationale
Evidence about Financial Capability outcomes for programme participants
Evidence that the Financial Capability outcomes were caused by the programme
Evidence about programme implementation, feasibility, and piloting
Evidence about relative costs and benefits of the programme
‘Nations of Savers’ is one of the five Agendas for Change that the Money and Pensions Service identified in its UK Strategy for Financial Wellbeing 2020-2030. The goal of Nations of Savers is to increase the number of Squeezed and Struggling working-age adults who are saving regularly by two million, by helping people to build a savings habit. Payroll savings schemes offer one important route to helping to achieve this goal.
Payroll savings schemes facilitate saving by allowing employees to make fully automated regular savings contributions direct from salary via their employer’s payroll system usually via a credit union. Employees only need to sign up to the saving feature once, however sign-up rates nationally (across the UK) appear to be low which highlights key challenges to the success of such schemes.
Such schemes exist across the UK but the particular context of Northern Ireland, where the use of credit unions are typically higher and employment incomes are typically lower, makes opt-in payroll schemes particularly valuable, potentially, in Northern Ireland. A pilot payroll savings scheme launched with two Small and Medium Enterprises (SMEs) employers in Northern Ireland (one in the technology sector with 150 employees, referred to as Employer A, and one in the construction sector with 120 employees, Employer B).
The study is part of a larger programme of payroll savings research commissioned by the Money and Pensions Service (MaPS). This study focussed on the experiences of key stakeholders (credit unions, employees, and employers) of payroll savings schemes in Northern Ireland, shortly following their launch, and sought to address several research questions:
The study used composite case studies based on in-depth semi-structured qualitative interviews with: the two employers who had launched payroll savings programmes; the two credit unions that offered these employers payroll savings services (one of which served both employers); and 18 employees at both firms (9 of whom who had and 9 who had not signed up to the schemes). The interviews were undertaken in March 2022 and the data were analysed thematically.In addition, a short quantitative survey with 33 employees of one employer (from approximately 100 employees) and data analysis of another short survey of just over 50 employees that had previously been administered by the other employer were conducted to supplement the qualitative findings.
In addition, a short quantitative survey with 33 employees of one employer (from approximately 100 employees) and data analysis of another short survey of just over 50 employees that had previously been administered by the other employer were conducted to supplement the qualitative findings.
Ellie Lugt, Sujatha Krishnan-Barman, Chiara Cappellini, Isabel Power, Cathy Coleman, Johannes Lohmann and Felicity Algate, Behavioural Insights Team