Savings Gateway

Lokolo

The government are planning to have a new 'Savings Gateway' for those on low income.

For every £1 you save, they government will put upto 50p extra (50 or 5?? I can't think its 50 but thats what I heard...).

This will be available through banks, building societies and PO from 2010.

Meh! Bring it in sooner, I want my student loan to go in there and get loads more money before I am earning loads :rotfl:

Mr_K

The devil will be in the detail....

50p for every pound seems very generous. Its aimed at the low paid (not specified who this includes but its supposed to cover 8 million people)

Baldur

Lokolo wrote: »

The government are planning to have a new 'Savings Gateway' for those on low income.

For every £1 you save, they government will put upto 50p extra (50 or 5?? I can't think its 50 but thats what I heard...).

This will be available through banks, building societies and PO from 2010.

Meh! Bring it in sooner, I want my student loan to go in there and get loads more money before I am earning loads :rotfl:

Looks as though it's only planned to run for two years. More info, Chapter 4.23 http://www.hm-treasury.gov.uk/d/bud08_chapter4.pdf

Reaper

Unfortunately for you the government wants you to spend now, save (and pay lots of taxes) later. So no chance of them bringing it forward.

However I was rather chuffed about the VAT cut - but only because I predicted it long before the media!
http://forums.moneysavingexpert.com/showthread.html?t=1275923 [Post 7]

Lokolo

Individuals in receipt of the following benefits and tax credits will be entitled to open
an account: Working Tax Credits; Child Tax Credits paid at the maximum rate; Income
Support; Jobseeker’s Allowance; Incapacity

Well thats crap. I don't get any of that, I am just a student. Damn that government ruining my plans!

SeanW

Everybody needs to be "encouraged" to save, not just the people on low incomes or in receipt of benefit.

I thought people on JobSeeker's allowance received the money to help get a job and live while doing so, if they have enough to save it needs to be cut!

Blah99

Yet another crazy decision by the Government. People on those benefits are already paid by the state out of our taxes, so let's encourage them to put the money right back into the bank by giving them even more money paid for by even more taxes! Woohoo!

I swear the people who come up with these stupid ideas don't live in the real world...

gozomark

SeanW wrote: »

Everybody needs to be "encouraged" to save

normally yes, but right now, no - the economy needs people to send

LucyTheDwarf

SeanW wrote: »

Everybody needs to be "encouraged" to save, not just the people on low incomes or in receipt of benefit.

I thought people on JobSeeker's allowance received the money to help get a job and live while doing so, if they have enough to save it needs to be cut!

Well said... it annoys me that they make up these schemes that clearly disadvantage those who go out and work, and save what they can while doing so, without taking a penny off the state.

Lokolo

LucyTheDwarf wrote: »

Well said... it annoys me that they make up these schemes that clearly disadvantage those who go out and work, and save what they can while doing so, without taking a penny off the state.

Of course but isn't that how labour came into power in the first place? Give the less advantaged more money?

LucyTheDwarf

There are the "less advantaged" and there are the lazy good for nothings who've never had any intention to work.

My brother is on a low income (about £8800 I think), but he can hold his head up high as he works - which is more than can be said now for most of the cretins he endured in his school years. He wouldn't qualify for this scheme, yet to my mind he is the type of low earner the government should aim it's savings schemes at.

I have nothing against anyone living on benefits, it is a good thing that the state supports those who cannot support themselves. But it winds me up that they "reward" those who will not support themselves.

Don't mind me, I'm a bit cranky today, very short on sleep.