Help to Save scheme announced
A new Help to Save scheme will be introduced for workers on low incomes and in-work benefits such as universal credit or tax credits.
A part of the scheme, people can save up to £50 a month alongside a 50% bonus after 2 years – worth up to £600.
Research shows that almost half of UK adults have less than £500 to cover for their emergencies.
Workers can continue to save under the scheme for a further 2 years with account holders receiving another £600.
Alongside the new scheme, the national minimum wage is also set to increase in October 2016 with half a million people receiving a pay rise of up to £450.
The new measures will be fleshed out further in Wednesday’s Budget.
Chancellor George Osborne said:
“This government is determined to improve the life chances of the poorest in our society and our new Help to Save scheme will mean millions of low income savers across the country could now receive a government bonus of up to £1,200 to help them build up their savings.”
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