EMPLOYERS have been urged to do more to encourage giving to good local causes.

A recent survey found that Kent households give less to charity than elsewhere.

Nationally, only one per cent of UK firms offer payroll giving schemes.

Those that do produced more than £90million through this method in 2003-4.

Now a retired finance director is trying to transform the situation and help charities win more employees’ cash.

Peter Griffith, who until recently worked for Wallis, part of the Kier construction group, in Maidstone, is disappointed that the number of firms in Kent offering payroll giving is so low.

He said: "Income from this source is virtually unknown by our local charities."

In this Year of the Volunteer, he wants to boost income from payroll schemes which he says are easy for firms to set up.

He says there are vital local charities such as hospices, Kent Air Ambulance Trust, The Blackthorn Trust and churches to name but a few.

Mr Griffith added: "Public funds and grants are becoming ever scarcer and our local chairites need ever greater support from the general public to continue to provide their services to the local community."

In his 2004 Budget, Chancellor Gordon Brown unveiled a grant scheme for small and medium sized businesses (SMEs) that set up payroll giving.

Launched in January, it gives a financial incentive to SMEs with fewer than 500 employees who set up a scheme before the end of the year by matching staff donations.

Payroll giving enables employees to donate to any UK charities straight from their salaries and get immediate tax relief of up to 40 per cent.

The full donations is taken out of each employee’s gross salary so that the overall income tax liability is reduced.

If differs from Gift Aid in that giving through Gift Aid entitles charities to claim basis rate tax already paid to HM Revenue and Customs.

Mr Griffith said: "Payroll giving schemes provide an easy way for smaller regular donations to receive tax relief.

"For a basic rate taxpayer, a monthly donation of 78p will be worth £2.

"If companies provide a scheme and there is a reasonable take-up by employees then the numbers multiply rapidly and will provide a very valuable new source of income for the charities.

"If the company wishes, it too can match contributions to its favoured charities multiplying the numbers still further."