The amount of money donated through payroll giving has had a modest annual increase of 5 per cent to £124m.

New figures released by HMRC today show 750,000 people use payroll giving, donating an average of £13.78 per month.

The total amount given through payroll giving has increased by £6m to £124m for the period 2012/13.

Peter O’Hara, managing director of Workplace Giving UK which funds the Geared For Giving Campaign that  encourages employers to set up and promote the scheme said: “These figures are very good news indeed and come at the end of a month when we have seen some really encouraging signs for the future of Workplace Giving.

“The recent statement from Sajid Javid, Economic Secretary to the Treasury, that he is encouraging all MPs to give to charity through payroll giving as well as the continued effort from the private sector will all help to build the awareness and effectiveness of the scheme.”

A Freedom of Information Act submitted by Workplace Giving UK in February of this year found a mere nine out of the 650 MPs give to charity through payroll giving.

The government is currently considering changes to payrollgiving following a consultation that elicited over 100 responses.

Proposals included opening up the scheme to for-profit providers as well as standardising forms. The scope of the consultation has disappointed many in the fundraising sector.