Loughborough MP, Nicky Morgan, has welcomed the launch of a new Government backed scheme helping people on lower incomes save for a rainy day.
The ‘Help to Save’ scheme is a new initiative which aims to support savers on low incomes by providing a tax-free bonus of 50 pence for every pound saved, up to a maximum of £50 each calendar month.
Savers investing the maximum monthly sum will find that after four years their £2,400 will receive an additional bonus of £1,200, far outstripping any interest rate on the high street.
Nicky said, “This is a scheme which should have a significant effect in helping people to get into the habit of saving, which in turn provides stability to household finances.”
The MP, who also Chairs the House of Commons Treasury Select Committee, added “Debt charity StepChange informs us that, in the UK, if every household had £1,000 in savings then the number of families with problem debt would be reduced by half a million.
“This really is about encouraging those on lower incomes to get into the habit of saving, a habit which can have a huge effect on managing our household finances.”
The Help to Save scheme is open to individuals and households eligible for working tax credit and receiving tax credit payments, or claiming Universal Credit with earnings of at least £542.88 in their last monthly assessment period.
Applications to take part in the scheme can be made by going to www.gov.uk/helptosave or telephoning 0300 322 7093.
Further information about the Treasury Select Committee’s report on Household finances can be found by visiting: https://publications.parliament.uk/pa/cm201719/cmselect/cmtreasy/565/56502.htm