New proposals to make it quicker for charities to collect donations and easier for employers to encourage charitable donations using Payroll Giving have been announced by the government.

Following a consultation, the government is to almost halve the processing time for donations from 60 to 35 days, allowing charities to access the money that has been donated more quickly.

The government will create improved webpages that will provide an online presence for donors, employers, charities and Payroll Giving agencies.

The government will be hosting a series of working groups, involving charities, Payroll Giving agencies and other stakeholders, to help Payroll Giving agencies and charities consider further improvements to the Payroll Giving process.

Payroll Giving enables individuals to donate money to charity directly from their salary via their employer, meaning that their donation is made free from income tax.

This means that the charity receives the full donation upfront, rather than having to reclaim the tax afterwards, as through Gift Aid.

In 2012 to 2013, Payroll Giving raised £124 million for charities from 750,000 donors.

Over £1.4 billion has been donated using this method in the last 25 years. However it is thought that the total amount collected could be considerably higher.