New Workplace Savings Scheme Launches in Scotland

A new workplace savings scheme has been launched in Scotland with the aim being to help more people earn themselves a potentially vital financial cushion.

The pandemic, among other issues, has meant millions of Scots struggle to save regularly and tend to have very little in the way of financial flexibility.

Now a new initiative is aiming to support people who are in work to set aside small sums of money each month so they can gradually establish some extra financial security.

The Scottish Community Lenders Fund is providing the financing to get the scheme - dubbed ‘Work and Save Scotland’ - up and running, with the Scottish government among those offering their support to the endeavour.

A collection of credit unions came together to create the Work and Save initiative, which is intended to be an expansion of payroll savings schemes those organisations have previously introduced into workplaces across Scotland.

The idea is that Work and Save helps people save more regularly because it automatically takes money out of an employee’s salary before it hits their bank account.

Part of the motivation behind the scheme is that research has repeatedly shown that people who have even a few hundred pounds set aside as savings can cope much more confidently with unexpected financial emergencies.

Shona Robison, social justice secretary with the Scottish government, has explained her reasons for supporting the new initiative that’s underpinned by public funds.

“Putting a small amount of money aside on payday can make it easier for people to build up a valuable financial buffer that is there when they need it,” she said.

“I’m pleased that our Scottish Community Lenders Fund is supporting Work and Save to help more employers set up workplace savings schemes.

“As well as promoting good financial management, it will also support credit unions by enabling them to offer a range of financial services to those who may not have access to more traditional financial routes.”

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