Payroll Local

Payroll Local is a project led by The new economics foundation (nef) with Lambeth Council and monea using the Brixton Pound electronic currency to enable staff to support local businesses and donate to local charities and social enterprises.

Website: www.brixtonpound.org

The Brixton Pound (B£) was launched in 2009 and is the UK's largest 'complementary currency'.  There are about 40,000 Brixton Pounds in circulation and 200 businesses in the borough of Lambeth accept them as tender.

In September 2011 the Brixton Pound launched as an electronic currency, so B£ holders can pay in notes and by text. The scheme comes with an incentive: people receive 11 £Bs for every £10 of credit purchased.

The next step is the development of Payroll Local. Employees of Lambeth Council will be able to take a small proportion of their wages in Brixton Pounds which they can then spend or donate locally with small businesses, charities and social enterprises. All staff who sign up to the scheme will also receive an additional 10% of their salary in local currency.

Building on the existing Brixton Pound electronic system all trade and donations will take place over an electronic and mobile phone system which will connect up SME's, charities and residents to facilitate trading of money, time and other resources through mobile text messaging and a web portal.

The project will use insights from behavioural economics to look at how the use of a complementary currency and different incentives can increase donations.

The Award: NEF has been awarded £83,250 to build and pilot the payroll local module.

Contacts

• Susan Steed:  Researcher, susan.steed@neweconomics.org
• Josh Ryan-Collins:  Senior Researcher
• Tony Greenham:  Programme Head
• Sophie Ellis: Head of Quality & Improvement Lambeth Council
• Simon Woolf: ICT architect QOIN