12 March 2008
The Saving Gateway: operating a national scheme
Budget 2008 has announced that the Saving Gateway will be introduced nationally, with the first accounts available to savers in 2010. A consultation document "The Saving Gateway: operating a national scheme" has been published alongside the Budget.
The Saving Gateway is a cash saving scheme for those on lower incomes. Saving is incentivised through matching - a government contribution for each pound saved. The Saving Gateway aims to help to kick-start a savings habit and promote financial inclusion through encouraging engagement with mainstream financial services.
Eligibility for the scheme will be passported from the following benefits and tax credits:
- Working Tax Credits;
- Child Tax Credits paid at the maximum rate;
- Income Support;
- Jobseeker's Allowance;
- Incapacity benefit and Employment and Support Allowance; and
- Severe Disablement Allowance.
- Accounts will be offered by financial institutions such as banks and building societies, and will run for two years. Savings will be matched with a government contribution when the accounts mature.
The Saving Gateway was first proposed in 2001, and has since been consulted on twice. Two pilots have taken place confirming the success of matching as a saving incentive and the financial inclusion benefits of the scheme.
The Saving Gateway: operating a national scheme is available in Adobe Acrobat Portable Document Format (PDF). If you do not have Adobe Acrobat installed on your computer you can download the software free of charge from the Adobe website. For alternative ways to read PDF documents and further information on website accessibility visit the HM Treasury accessibility page.
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