Around half of the UK population possess the maths skills of a primary school child, equating to approximately 20 million working adults who struggle with numbers, according to the National Numeracy Trust. This widespread issue significantly impacts employees’ ability to understand their payslips, exacerbating financial challenges during the ongoing cost-of-living crisis. With National Numeracy Day on Wednesday 21st May 2025, highlighting the importance of everyday maths, innovative payroll solutions are stepping up to address this critical gap in financial literacy.

A National Numeracy Trust study reveals that only 38% of UK adults have the numeracy skills necessary to manage everyday finances effectively. This leaves over 60% grappling with tasks such as calculating percentages, understanding interest rates, or managing budgets. The consequences are profound, with many making poor financial decisions, such as taking out high-cost loans or failing to save for retirement due to difficulties in handling personal finances.

Anna Buckle, director of operations and impact at PayCaptain, a cloud-based payroll software provider, emphasises the scale of the issue. “78% of UK adults having maths skills below GCSE grade C – and the lack of numeracy skills in the UK has several negative consequences. It can lead to people making poor financial decisions, such as taking out high-cost loans, or failing to save for retirement because they’re failing to manage their personal budgets,” she said. PayCaptain, which processes payroll for thousands across various sectors, recognises that payslips can be daunting for those with low numeracy skills. “Payslips can be a daunting set of numbers to interpret and understand, and as those who struggle with numbers will already face barriers to managing their money, PayCaptain is clear that their payslip should not be one of them,” Buckle added.

Research by the Chartered Institute of Payroll Professionals (CIPP) underscores this challenge, finding that over 26% of employees struggle to comprehend their payslips. This difficulty leads to several adverse outcomes.

Barriers to financial clarity and stability

• Calculate their take-home pay before payday. Creating difficulty in budgeting and tracking spending between paydays.
• Identify opportunities to save money. Making it difficult to build up savings for the future.
• Understand the different deductions that are made from their pay. Leading to confusion and errors or disengagement with the payroll process.
• Plan for unexpected financial shocks. Making it difficult to cope with unexpected expenses, such as a job loss, illness or financial emergencies within the home.

Simon Bocca, founder and CEO of PayCaptain, highlights the urgency of addressing this issue. “In an increasingly complicated financial world and as the cost-of-living crisis continues, it’s hugely important that people can understand the pay in their pockets. The format of payslips has been left largely unchallenged, and because they are overcomplicated, they are rarely engaged with by employees,” he said. Bocca stresses that simplifying payslips is vital for empowering employees. “If people are to be empowered to achieve their financial goals, presenting these important numbers in a way that can be understood is crucial. PayCaptain is helping thousands of people have real confidence in their income by applying a unique and innovative approach to the payslip,” he added.

Improving payslip transparency through simple, digital tools

PayCaptain advocates for practical solutions to enhance payslip accessibility. Employers and payroll providers can:

• Use plain language. Payslips should avoid jargon and employ simple explanations to ensure clarity for all employees.
• Provide clear explanations. Detailed breakdowns of deductions help employees understand how their take-home pay is calculated.
• Use interactive tools. Digital payslips enable employees to explore their pay interactively, fostering better engagement and understanding.

In 2023, PayCaptain launched the world’s first Plain Numbers-certified payslip, a groundbreaking initiative to support employees with lower numeracy skills. Assessed by Plain Numbers, this payslip meets high standards of clarity in communicating numbers, deductions, and take-home pay. Bocca reflects on its impact: “As the cost-of-living crisis continues and financial decisions become ever more complex, it’s time for employers and payroll providers to step up. By removing barriers to understanding pay, businesses can help employees build financial resilience, make informed choices, and feel more in control of their money. It’s a small change with the power to make a big difference.”

As National Numeracy Day 2025 approaches, the focus on improving numeracy skills remains critical. With innovative tools like PayCaptain’s certified payslips, employers can play a pivotal role in enhancing financial literacy, reducing stress, and fostering a more financially resilient workforce.