PM Announces Help to Save Scheme for Low Earners
March 14, 2016
Prime minister David Cameron has announced details of a new government scheme designed to encourage low-level earners around the UK to save more money on a monthly basis.
The Help to Save initiative will make available bonuses worth up to £1,200 over the course of four years to anyone who is on a low income but manages to save up to £50 per month.
People who claim working tax credits or universal credits are the intended beneficiaries of the scheme, which will see the government contribute up to £25 per month to the savings accounts of low earners nationwide.
The scheme is being framed as a response to the fact that many millions of adults around the UK currently have less than £500 set aside as savings.
“I’ve made it the mission of this government to transform life chances across the country,” Mr Cameron said in an announcement about the Help to Savescheme.
“That means giving hard-working people the extra support they need to fulfil their potential.
“And that’s what these new measures will achieve – helping someone start a savings fund to get them through difficult times, giving people on low incomes a pay rise and making sure teenagers have the experience and networks to succeed.”
In light of planned cuts to public spending set to be announced this week, the plan to incentivise saving among low-income Brits have been dismissed by the Labour Party as being “like stealing someone’s car and offering them a lift to the bus stop”.
“These [public spending] cuts will mean families are going to struggle to have enough money to make it to the end of the week, let alone save for the future,” said Labour’s shadow work and pensions secretary Owen Smith.
Roughly 3.5 million people around the country who claim either universal credit or tax credits will potentially be eligible to use the government’s Help to Save scheme.
If the scope of the scheme is maximised then an individual could save £3,600 over the course of four years, with £1,200 of that money being contributed by the government.
If you live in Scotland and you’re struggling to retain control of your personal finances then Scotland Debt Solutions could help. Call us directly to arrange a free consultation.
The start of a new year is the perfect time to take stock of your finances and put plans in place for a financially savvy year ahead. While you may feel your problems are insurmountable, there are always things you can do to help, most of them surprisingly easy. Here are 7 ways you can […]
If you have credit card debt which is attracting a high level of interest, moving this balance onto a lower interest card could save you a considerable amount of money. This process is known as a ‘balance transfer’, and if done correctly, this process could save you money and also reduce the time it takes […]
Many thousands of young Brits are being actively encouraged towards taking on debt and spending borrowed money even before they reach their 18th birthdays. That’s according to the price comparison website comparethemarket.com, whose research suggests that roughly one in four 16 and 17 year olds in the UK have been offered credit cards or asked […]
If you’re in serious debt with no hope of repaying your unsecured creditors, you don’t have to wait for a creditor to take legal action against you. You may be able to take matters into your own hands and apply for sequestration (bankruptcy in Scotland). This also prevents your situation from worsening. There are two […]
If you’re looking to save some money it’s a good idea to make a detailed budget that lets you see where your cash is currently being spent, and offers an overall view of your finances. You’ll need to collect together your income and expenditure details, including annual costs such as insurance, car expenses, birthdays and […]
Scotland has a number of formal debt solutions that can help you deal with a difficult financial situation. It’s advisable to take action as soon as possible, however, to prevent your levels of debt escalating when interest and other charges are added. Obtaining professional advice is key in this respect. An approved money advisor or […]