New savings scheme from Chancellor

Tillydot

I think I heard a snippet this morning on the news about a new scheme that the Chancellor is going to announce tomorrow concerning savings. If you save £50 a month then there is a Government incentive for extra money? I think one of the stipulations is you need to be on tax credits. Does anyone know anything about this or have I misheard?

jamesd

It is unlikely that the Chancellor will announce any new savings scheme tomorrow, on Tuesday 15th March 2016. This is because Budget day is Wednesday 16th March and the Chancellor is not likely to pre-empt his own Budget announcements.

A savings scheme of that sort for those on all forms of means tested benefits would be a socially useful thing because this group of people are some of the most vulnerable to financial shocks and have high pressure not to save due to limited incomes that needs to be overcome. Not just those receiving tax credits.

Tillydot

Thanks for your reply, yes it was Wednesday on Budget day. Still not sure what it is though, anyone?

gingercordial

News story here: http://www.bbc.co.uk/news/business-35799404

paulharding150

What you've heard is speculation.

Wait until the budget on Wed and you'll learn some facts.

jimjames

paulharding150 wrote: »

What you've heard is speculation.

Wait until the budget on Wed and you'll learn some facts.

It no longer appears to be speculation

https://forums.moneysavingexpert.com/discussion/5430224

Low-paid workers who put money away in a new savings scheme will be rewarded with a bonus of up to £1,200, Prime Minister David Cameron has announced.

Eco_Miser

jimjames wrote: »

Low-paid workers who put money away in a new savings scheme will be rewarded with a bonus of up to £1,200, Prime Minister David Cameron has announced.
Remember the saying: if it looks too good to be true it almost certainly is.

Sometimes your signature looks like a comment on what you are reporting.:rotfl:

Tillydot

Thanks for the info everyone.

Oldbiggles

"Beware of Greeks bearing gifts" as the saying goes.

Firstly: you have to be on benefits to apply. So how are you able to save?

Secondly: if you do manage to save and have a decent balance including the added bonus at the end of the saving period, will they take that into account when calculating your future benefit?

This Chancellor is a cunning old fox. :cool:

Mistermeaner

Ridiculous scheme. Cut the benefits if people have more than enough. Working people pay enough tax already.

grey_gym_sock

they are also cutting benefits (freezing most benefits for several years, plus some extra cuts in housing benefit and ESA), so it's just taking away with 1 hand what they give with the other. but worse than that, because the giving is only to people who do manage to save a bit, so not to those who are struggling the most.