Payroll savings: supporting the Financial Inclusion Strategy

In November 2025, HM Treasury published the Financial Inclusion Strategy - setting out an ambitious vision to ensure everyone can access and use the financial products and services they need to participate fully in society.

At the heart of the strategy is a drive to strengthen household financial resilience - helping people build buffers against shocks, reduce problem debt, and plan with confidence for the future. A key lever for change is the promotion of workplace payroll savings, recognised as one of the most effective and sustainable ways to help people develop lasting savings habits.

Why payroll savings matter

According to a 2024 Financial Conduct Authority survey, one in ten UK adults has no savings at all, and a further 20% have less than £1,000 tucked away¹. That leaves millions vulnerable to unexpected costs - a car repair, a boiler breakdown, or time off work - that can quickly spiral into financial distress.

Payroll savings schemes are designed to tackle that head-on. By allowing employees to save directly from their salary, they aim to help people start and maintain healthy saving habits. Research cited in the HM Treasury’s strategy shows this approach is particularly effective for those on lower or variable incomes, who may otherwise struggle to set money aside.

It’s a simple concept with wide-reaching potential.

Recent research from The Fidelity Global Sentiment Survey, 2025 (which includes 1,000 UK working adults) reinforces this. 38% said meeting their savings targets is causing them stressand of those, over half (52%) said it affects their ability to concentrate at work.

Regular saving through payroll helps people avoid problem debt, improves wellbeing, and supports wider financial confidence - which, in turn, contributes to a more resilient workforce and society. 

Encouraging payroll savings to build financial resilience 

The FCA has released a statement², giving employers the confidence to offer payroll savings, with clear guidance around their responsibilities. Importantly, it confirms that employers can safely facilitate payroll saving schemes without taking on regulatory or financial risk, provided they partner with authorised providers. The statement also makes clear that such schemes can be structured so employers are not carrying out regulated activities or financial promotions, and that employee deposits remain protected under the Financial Services Compensation Scheme (FSCS).

In addition, the Money and Pensions Service (MaPS), The Investing and Saving Alliance (TISA) and Nest Insight will bring together a national coalition of employers to raise awareness and increase adoption of payroll savings. We’re working closely with TISA as activity evolves.

HM Treasury is also encouraging innovation in scheme design, including ‘opt-out’ or ‘autosave’ models that automatically enrol employees unless they choose not to participate.  We anticipate this work will join up with wider pension commission discussions, an area where we’re already collaborating closely with the DWP.

These measures aim to normalise saving, making it as easy and supported as pension saving has become. In doing so, the government is aligning financial inclusion with workplace wellbeing and productivity.

A shared commitment to inclusion

We share the government’s ambition to help people achieve financial resilience for life. We also welcome the FCA’s clarity and confidence-building approach. It’s a signal that financial inclusion isn’t just policy rhetoric - it’s becoming embedded in how the system supports working people to thrive.

We’re already working with employers to make saving simpler, smarter, and more accessible – whether that’s through their workplace pension or our Invest@Work scheme - where employees can save directly from their salary through their payroll into a Stocks and Shares ISA, Lifetime ISA or Investment Account.

Fidelity’s research³ showed that employers who invest in financial wellbeing are seeing the benefits. 40% of UK workers said that access to financial education and short-term savings support is an important reason to stay with their employer. This highlights that supporting financial confidence isn’t just the right thing to do - it’s a key part of attracting and retaining talent.

Beyond payroll savings, we’re committed to inclusion in its broadest sense. We’re improving accessibility and understanding through initiatives like British Sign Language (BSL) certified live interpreters and enhanced support for vulnerable customers. We’re also in the process of rolling out an industry-leading Customer First Communications Framework - which uses behavioural science to improve understanding and help make financial decisions clearer and easier.

Building confidence for a lifetime of smart choices

At Fidelity, we believe true financial wellbeing comes from a lifetime of smart choices. For us, that means helping people see the bigger picture - connecting everyday saving habits with long-term security and financial freedom.

The Government’s latest Financial Inclusion Strategy reinforces the direction we’re already taking – and it’s reassuring to see our work reflected in a broader, national effort to build financial resilience.

At the heart of it all is a simple truth - our members’ interests and wellbeing drive everything we do. That’s what shapes our decisions, our innovation, and the partnerships we build - helping people feel confident about their finances today, and secure in their choices for tomorrow.

For more information

To find out more about how Fidelity can help you strengthen your employees’ financial wellbeing, speak to your Relationship Director or usual Fidelity contact. Together, we can design targeted strategies, clear communications, and practical tools that support your workforce - helping more people build lasting financial confidence and resilience.