Bacs' technical problem means 400,000 are not paid on time

Due to a technical error at financial transaction firm Bacs, up to 400,000 employees will not be paid today.

The Institute of Payroll Professionals (IPP) is encouraging employers to communicate the problem to employees and support staff who have missed out on their monthly payment.

Alison Ward, director at the IPP, explained: "It is not the employers fault, but the responsibility does now lie with the employer to work with the banks and help alleviate the stress."

The exact cause is not yet clear, however, it is thought a technical problem occurred ivolving the payment processing systems. The IPP claimed that the sheer weight of employers trying to pay year-end bonuses before the end of the tax year has been a key contributor.

"This is the big hit of the year, some employers will be making additional payments to award bonuses, because everything has to be paid by the 5th April," said Ward.