Saving Gateway

The Saving Gateway is a cash saving account for working age people on lower incomes, which will be introduced in 2010. It will provide a strong incentive to save, through a Government contribution of 50p for each pound saved.

The Saving Gateway Accounts Bill was introduced to Parliament on 4 December 2008. This Bill will set in place the rules for the scheme. Draft regulations setting out more detail on the scheme were published on 2 February 2009. View draft regulations with explanatory notes (PDF 128KB) .

The aims of the Saving Gateway are to kick-start a saving habit among working age people on lower incomes, by providing a strong incentive to save through a Government contribution for each pound saved; and promote financial inclusion, by encouraging people to engage with mainstream financial services.

The Saving Gateway was first proposed in 2001 and since then it has been consulted on and successfully piloted twice. Both pilots were independently evaluated, and further research on the second pilot was also published on 8 June 2009. This further research followed up participants around two years after their Saving Gateway had matured, in order to explore longer-term changes in saving behaviour and attitudes. Copies of the evaluation and research reports are available below.

A document seeking views on the operation and administration of the national scheme, 'The Saving Gateway: Operating a national scheme', was published alongside Budget 2008. A summary of responses to this consultation, which also sets out the design of the national scheme, was published alongside the introduction of the Bill.

Eligibility for Saving Gateway accounts will be passported from the following qualifying benefits and tax credits:

income support;
jobseeker’s allowance;
incapacity benefit and employment and support allowance;
severe disablement allowance;
working tax credit (with income below a specified level); and
child tax credit (with income below a specified level).

Recipients of carer's allowance will also be eligble.

Accounts will run for two years and will be offered by financial institutions such as banks, building societies and credit unions. The Government contribution of 50p for each pound saved will be paid at the end of the accounts.

Saving Gateway

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