Saving Gateway (Government Saving Scheme?)

Stigkgal

Hi All!
I received this from my daughters' school today about a government saving scheme where its suggested that after a period of two years, every £1 you save will earn you 50 pence bonus from the government?
Here is an a-bridged copy of what I recieved from the school:

From 2010 there will be a new Government Supported Cash Saving Scheme called 'the Savings Gateway'. It's for people of working age who are on low incomes, and aims to help kick start a saving habit. The Government will add 50 pence for each £1 saved into Saving Gateway accounts. You will qualify if you get certain benefits or tax credits.
Who can get the new accounts?
You will be able to open a Saving Gateway Account if you get any of the following:
Income Support
Jobseekers Allowance
Incapacity Benefit
ESA
Severe Disablement Allowance
Tax Credits - if you have an income below £16,040
Carers Allowance (you must be in receipt of the allowance, not just have an underlying entitlement)

How the Accounts will work
When the scheme launches in 2010 if (school) records show that you qualify for an account, you will be sent a letter of invitation, an information booklet & list of Saving Gateway providers by HRMC. You will be able to take your letter to any approved Saving Gateway provider and open your account.
You will then be able to save as much as you like into your account for two years, with a top limit of £25 a month. At the end of two years the Government will add a reward of 50 pence for each £1 saved.
Don'tworry if £25 sounds too much- every £1 you save will earn you an extra 50 pence. And you will be able to withdraw your savings should you need to without affecting the Government reward you have earned to that point. Remember, you'll only be able to open one Savings Gateway Account per lifetime, so make sure you open one at a time that's right for you.
What happens next?
There will be more information about the Saving Gateway Accounts nearer the launch in 2010, including who can get one, how to open one and how it works.
You don't need to do anything in the mean time, but it might be worth checking to see if you qualify for any of the benefits or tax credits mentioned above.
(Directgov Website Info then given)

I worked this out, and if its 'Legit', then I could save 24 x £25 = 600 Plus 50 pence for each £1 after two years = £300 totalling £900.

Anyone got any warning about this? I received this from a trusted source, but hey- they could have been had themselves huh?

Does anyone else know anything about this, cos its the first Ive heard.........?

Happy Saving (money or whatever else...)!

cifpower

It is listed on the direct gov website so it appears legit

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/ManagingMoney/SavingsAndInvestments/DG_10010450

If I receive a letter it is something I will definitely take up

Stigkgal

Oh cool! Thanks for that cifpower. Im sure that will help loads of people!

[Deleted User]

yes its perfectly legit it was announced sometime ago and has been trialed in a number of areas,certainly seems like a good deal and the potential to make £300 in 2 years looks good,far better(by a mile)than existing savings rates
yet another reason NOT to vote tory

cifpower

woodbine wrote: »

yes its perfectly legit it was announced sometime ago and has been trialed in a number of areas,certainly seems like a good deal and the potential to make £300 in 2 years looks good,far better(by a mile)than existing savings rates
yet another reason NOT to vote tory

Have the Tories said they would abolish this scheme?

[Deleted User]

cifpower wrote: »

Have the Tories said they would abolish this scheme?

i doubt they will keep a scheme that hasnt started yet,especially when you consider it will benefit the poor and not the likes of lord Cashcroft,after all families on earnings as low as £30k will lose around £20 a week(£1000 a year)under tory proposals

cifpower

woodbine wrote: »

i doubt they will keep a scheme that hasnt started yet,especially when you consider it will benefit the poor and not the likes of lord Cashcroft,after all families on earnings as low as £30k will lose around £20 a week(£1000 a year)under tory proposals

You mentioned Lord Ashcroft. Let's not forget Lord Paul. Another non-dom who bankrolled Gordon Brown's leadership campaign and claims expenses from the Lords.

bestpud

Does anyone know if people on WTC can get one of these?

It just says tax credits, so I assumed it meant either, but if it is dependent on free school meals, it will only apply to people on CTC with a low income...

supersaverkerry

Just wondering is this only available to parents then?

Its says if school records show you are eligible then you will get an invitation to open an account, but whilst I get the qualifying benefits I do not have any children in a school.

bestpud

supersaverkerry wrote: »

Just wondering is this only available to parents then?

Its says if school records show you are eligible then you will get an invitation to open an account, but whilst I get the qualifying benefits I do not have any children in a school.

Def not only for parents as we had a leaflet about it at work and they are adults with learning disabilities who claim benefits but don't have children.

There must be another way they contact people too - perhaps they are just starting with that group?

DX2

bestpud wrote: »

Does anyone know if people on WTC can get one of these?

It just says tax credits, so I assumed it meant either, but if it is dependent on free school meals, it will only apply to people on CTC with a low income...

Tax credits - if you have an income below £16,040