Savings scheme for those on low incomes gives up to £1,200 bonus - MSE News

BakingC

Once again a swing and a miss for the government claiming they are trying to help those on lower incomes. Per Martin's warnings those without much financial education might prioritise saving rather than paying off debts making them worse off, those who need help most do not have £50 a month spare to save and the number relying on foodbanks is every increasing.

This is an even worse move than when they increased the ISA limit claiming to help those on lower income. Those on lower incomes didn't have £5k to put into an ISA let alone £20k.

This government consistently introduces these complex and useless ways to try and help those on lower incomes without actually addressing why their income is so low in real terms e.g. higher inflation, no real wage growth, a minimum wage that is below what everybody says is a "living" wage, unaffordable housing

benj111

@BakingC
I have to say I'm quite annoyed and disappointed at Martin for saying that. Click on the 'Deals' tab up above, is he worried people will prioritise saving 40% off at Frankie and Benny's rather than saving or getting out of debt? Are ISAs encouraging people to save rather than get out of debt? should interest rates be raised or lowered to encourage people to pay off debt, rather than save?
I find it patronising, and just means you can criticise the government for anything that encourages saving.

Milarky

BakingC wrote: »

This government consistently introduces these complex and useless ways to try and help those on lower incomes without actually addressing why their income is so low in real terms e.g. higher inflation, no real wage growth, a minimum wage that is below what everybody says is a "living" wage, unaffordable housing

Remember folks, this is sponsored by The Department for Looking for Things to Do, (D4L42D)

Roland_Flagg

Sorry if I'm being thick or is this scheme open to people who are claiming unemployment benefit or signing on without claiming benefit for NI credit?

[Deleted User]

Its either a pile of crock or a genius scheme,


pile of crock because you have to be on a benefit to take advantage and on a benefit you should not have £50 surplus to be able to save. What about Mr & Mrs low earner without kids on £15 / 16K who really are low income household


Genius because we get the PR stunt of offering something to the poor knowing full well the uptake wont be that great.

cashbackproblems

dealer_wins wrote: »

What a great scheme for benefit fraudsters, nice little extra earner.

Most genuine benefit claimants wont be able to save this amount!

Agreed the Tories are becoming like a socialist party rewarding laziness and tax cheats

libra10

This scheme seems great for those who are eligible.

However, I have a relative, who is single, working full time on low wages, and because he doesn't receive benefits, he is unable to take advantage of this scheme.

Doesn't seem fair to me.

alewin

BakingC wrote: »

those who need help most do not have £50 a month spare to save

You don't have to save £50 a month, thats the maximum you are allowed to save.
You could just save £10 or £20 or a fiver, save whatever you can and you'll receive a 50% bonus on the highest balance.

If you need to money, just withdraw. It's not locked in.

sunshine81

Wow the 'stereotypers' are out in force...

I'm not lazy, nor a tax cheat, nor a benefit fraudster, nor poorly educated. I'm eligible for this scheme as I receive working (yes WORKING) tax credits and child tax credits. I work full time for the NHS and have two young children who need childcare while I work... Their dad decided he was going to be a pick and mix parent and left us two years ago.

I'm going to utilise the scheme and save the £50 a month, which I'll raise either by selling something or making cuts somewhere else in the month.

No scheme ever suits anybody, every scheme is not for everyone... I'm grateful this one fits me and will give my house deposit saving a boost.

datlex

I think it is a shame it is only open to people on benefits. Encouraging saving for everyone would be good.