Earlier this month I met with the Economic Secretary to the Treasury, John Glen MP, during which we discussed the Government’s new Help to Save scheme. Around four million adults could be eligible for this new savings scheme that offers bonuses worth up to £1,200.
Help to Save is being rolled out across the country now, with accounts available to all who are eligible by October 2018. The aim of Help to Save is to support hard working families on lower incomes to set aside a pot for a rainy day. Research has found that having £1,000 in savings reduces the chance of a family falling into debt by 44%, so it is great to see this Government supporting hard working people in this way, assisting in ensuring financial resilience for so many people.
This programme will be open to adults on receipt of Working Tax Credit or Universal Credit with minimum household earnings equivalent to 16 hours a week on the National Living Wage, which is currently £542.88 a month. Help to Save will work by providing a 50% bonus on amounts up to £50 a month in savings, to be paid after two years with an option to continue saving for a further two years and received an additional bonus. Overall, this means individuals can save up to £2,400 and benefit from a Government bonus worth up to £1,200.
This is a fantastic programme from the Government to help hard working people prepare for future eventualities, and the Government will work with stakeholders including housing associations and money advice organisations to promote awareness of this important scheme. It is great to see such a positive step from a Government that will benefit so many people in such a positive way.