Included in the 2004 Budget documents was a commitment to introduce a grant scheme to encourage employers to set up payroll giving schemes. Prior to April 2004, the Inland Revenue managed a successful promotion for payroll giving that involved the addition, by the government, of 10% of employees' donations.

The 2004 Financial Statement and Budget Report stated: "The Government is launching a Payroll Giving grant scheme. SMEs with fewer than 500 employees who set up new Payroll Giving schemes from April 2004 will be able to apply for a one-off grant payment to assist with the cost of establishing their scheme. The grant will be available for two years."

That document also indicated that the government was allocating £;5 million in each of this and the coming tax year for the grant scheme.

So far there has been no announcement about the introduction of the scheme. It is the responsibility of the Home Office, not the Inland Revenue. Replying to our enquiry about the future of the scheme, the Home Office has said: "This is now a Home Office responsibility. We will be making an announcement about the scheme in the next few months." The reply does not appear to indicate that the scheme is a priority issue for the Home Office. We have therefore asked for further information, in particular, whether the scheme will apply retrospectively to employers who have set up schemes since April 2004 and if any of the £;5 million allocated for 2004/05 that is unused as a result of the delay in setting up the scheme will be carried forward to 2005/06.

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