The government is deliberately delaying the launch of its promised promotional campaign to boost payroll giving until the payroll giving agencies devise a way to get the system working better.

The government has long been an advocate of payroll giving and promised in the Giving White Paper to fund a campaign to encourage employers to embrace the donation method.

But since then ministers have been persuaded that the existing payroll giving system is not fit for purpose, and should be overhauled before any such campaign is launched.

In the Office for Civil Society’s one-year-on progress report in response to Lord Hodgson’s red tape-busting report Unshackling Good Neighbours, it laid out its update on recommendation 6: “Changes to encourage payroll giving by smaller companies should be implemented”.

The OCS report said: “Work is continuing in this area. The Cabinet Office and HM Treasury are currently working with the payroll giving agencies to improve their individual and collective performance.

“Before embarking on any promotional campaign, the government is keen to get the system working more effectively and efficiently.

“In early March a letter was sent to the payroll giving agencies from the minister for civil society and the Economic Secretary to the Treasury. It called upon then to come back with plans for improving their individual and collective performance. Their responses are expected towards the middle of 2012.”