The additional scheme, called Giving Payroll Giving – The Xtra Factor, allows employees to sign up to increase their donations by a nominal amount once a year.

The first company in the UK to introduce the new facility to its employees is Home Retail Group, owner of Argos and Homebase. Lorna Liggett, community affairs manager at Home Retail Group, said: “Many payroll giving relationships are long standing and, once they are set up, often not amended. By signing up to the Xtra Factor, employees are ensuring their donations increase regularly meaning causes they support have more funds to cover annual cost increases.”

She said that allowing staff to choose the level of increase means that it will have a wide appeal to all employees, both full and part time.

Jason Doherty, sales and marketing manager at Charities Trust, said: “In 2005 payroll giving donations in the UK reached almost £100 million. If every single donor signed up to payroll giving agreed just a small nominal increase of 3%, for example, the Xtra Factor would deliver a staggering £3 million additional revenue for charities and good causes.”

To find out how to offer employees the option to donate more through payroll giving visit www.thextrafactor.org