Savings Gateway ‘to help those who need it most’

The government has announced it is to launch the Savings Gateway scheme in 2010.

Aimed at low-income families on tax credits and benefits, the scheme will last two years and although an amount has not yet been agreed, will see the government match every pound saved by those involved.

However, Adrian Coles, director-general of the Building Societies Association, stated that he hopes the scheme will be expanded to include other members of the public, not just the eight million originally targeted.

“A high match rate will also be needed to maximise saver participation,” he added.

At the end of the two-year period, the savings accounts will be rolled over into individual savings accounts.

Halifax, who piloted the scheme in 2001, has welcomed the initiative and commented that it will help those who need financial help the most.

The bank is taking an active role in the consultation of the scheme, it added.

© Adfero Ltd

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