Benefits (DLA, etc) and saving - new Government scheme?

nemo183

I've just been over to East London to pick up some post for a relative, and it includes a new savings scheme, which appears to be run by the government, for people claiming benefits - including DLA and JSA. It seems to be an initial trial in a small area, and the general idea seems to be that the Government will "top up" any savings certain benefits claimers make - up to about 20%. The scheme admin is done by the Halifax - is this old news, or can anyone shed any further light?

Ted_Hutchinson

Savings Gateway By invitation only and only in particular trial areas. Good scheme if your in the right place and lucky enough to be able to participate. Unfortunately it will be most likely to benefit those who have got relatives who can subsidise the savings to maximise the benefits.

nemo183

Well, this did occur to me as a small problem. Can't quite see how anyone on these benefits will be in any position to save money. So what ever is the point? Must have cost a fortune to set up - let alone dream up. Anyone know the Minister responsible?

Fran

nemo183 wrote:

Well, this did occur to me as a small problem. Can't quite see how anyone on these benefits will be in any position to save money. So what ever is the point? Must have cost a fortune to set up - let alone dream up. Anyone know the Minister responsible?

What would worry me about this is that if the more frugal people are able to save money they will then cut the benefits from the minimum that they are now for everyone and people with debts will be in even worse positions.

nemo183

Fran wrote:

What would worry me about this is that if the more frugal people are able to save money they will then cut the benefits from the minimum that they are now for everyone and people with debts will be in even worse positions.

Yes, I see what you mean. On the other hand, this "wonderful" scheme will really only work for a tiny minority of people in special situations - and these people are likely to be least in need of extra help.

I'd just love to find out just who thought up this idea, and what they hoped to achieve by it.