Payroll Giving, which enables employees to donate direct to charities from their pay tax-free, is 25 years old this week and the Association of Payroll Giving Organisations (APGO) marked the anniversary by delivering a giant card to 10 Downing Street, highlighting the £1.2 billion raised and thanking companies and their employees for using the scheme.

The Government is backing the scheme and encouraging more companies to take up Payroll Giving as an effective means of supporting charities.

Liz Davies , representative of the APGO, said: "The amount raised for charities is a marvellous achievement, both by companies who Offer Payroll Giving, and their wonderfully generous employees who recognise the value of sustained giving from their payroll, tax free, to charity.

"The 25th anniversary of the scheme is a great opportunity for us all to say thank you to them."

So far the taxman has contributed 30 per cent of the £1.2 billion total, but APGO are keen to increase the uptake of Payroll Giving in the next five years.

Davies added: "Even in these challenging times, people can see the huge value of tax free giving. By 2017 we are aiming to double the number of employers offering the scheme so even more charities and their beneficiaries are provided with a sustained and regular income stream."

Prime Minister David Cameron said: "The amount of money that people give to charities in this country is a testament to the generosity of the British people. Payroll Giving is a great idea because it makes giving easier and a normal part of life.

"I celebrate the £1.2 billion raised for charities by Payroll Giving over the last 25 years, and I want to ensure that Payroll Giving is made even easier and more compelling."

Leader of the Opposition Ed Miliband added: "Payroll Giving has been a simple and successful way of helping good causes. I’m delighted that it continues to have widespread support and am sure that it will support charities and other good causes for many more years to come."

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