ABCUL Welcomes FCA Seeking to Boost Workplace Savings

Friday 29 August 2025

As part of the Government’s Financial Inclusion Strategy, the FCA has published a statement providing clarity and reassurance for employers, payroll providers and savings providers on how workplace savings schemes can be set up and run in line with existing rules. The move aims to boost confidence and encourage more employers to offer payroll savings, which are proven to help employees build financial resilience.

Emma Reynolds, Economic Secretary to the Treasury said: “Payroll savings schemes are a great way for everyday workers to put a little aside for a rainy day – this statement helps businesses support their employees to make good financial decisions.

“I look forward to publishing the Financial Inclusion Strategy later this year where we will build on this important work.”

The regulator highlighted the importance of savings in helping consumers manage their financial lives. According to the latest Financial Lives Survey, one in ten people have no cash savings at all, while a further fifth have less than £1,000 put aside for emergencies. Workplace savings schemes could therefore make a significant difference, yet only 7% of UK employers currently offer them.

Examples of the positive impact of workplace savings can already be seen across the credit union sector. In 2021, Sheffield-based TransaveUK Credit Union joined an innovative partnership with Nest Insight and SUEZ recycling and recovery UK to pilot an opt-out approach to workplace emergency saving. The trial automatically enrolled new starters into payroll saving with TransaveUK, unless they chose to opt-out. Two years after the scheme was launched, around 95% of employees enrolled in this way continue to save regularly.

Welcoming the FCA’s announcement, ABCUL Chief Executive Matt Bland said: “We warmly welcome the FCA’s efforts to provide clarity and confidence around workplace savings schemes. Credit unions up and down the country already play a vital role in offering payroll saving opportunities, helping employees build up millions of pounds in savings each year.

“A lack of savings leaves people more vulnerable to life’s inevitable shocks, increasing the risk of problem debt and the impact this can have on wellbeing. Even a modest savings buffer can make all the difference when faced with an unexpected bill or financial emergency.

“With ABCUL already working closely with Government on its Financial Inclusion Strategy, this will be another important item on the Association’s agenda. We look forward to collaborating with the FCA, HM Treasury and other partners to ensure that more workers can access payroll savings and to continue strengthening the financial resilience of households across the country.”