MSE News: Help to Save scheme to offer £1,200 bonus to low-paid workers

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  • longleggedhair
    longleggedhair Posts: 462 Forumite
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    So lets get this straight, I'm going to work to pay my taxes so people in receipt of Benefits can be given a cash bonus to save. I'm disgusted, please remind me why I bothered to vote Conservative. This sounds like one of the stupid schemes Labour would have come up with.
  • redux
    redux Posts: 22,976 Forumite
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    edited 15 March 2016 at 11:12AM
    longleggedhair wrote: »
    This sounds like one of the stupid schemes Labour would have come up with.

    It is a scheme that Labour came up with.

    It was due to start on 1 July 2010, and Mr Osborne abolished it in his Budget on 22 June 2010, on the grounds it was not affordable.

    The main noticeable difference is that the contributions and bonus can now be up to twice the size, previously up to £25 a month now £50.

    Archive page for comparison:
    http://webarchive.nationalarchives.gov.uk/+/www.direct.gov.uk/en/MoneyTaxAndBenefits/ManagingMoney/SavingsAndInvestments/DG_10010450
  • bristolleedsfan
    bristolleedsfan Posts: 12,088 Forumite
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    redux wrote: »
    The main noticeable difference is that the contributions and bonus can now be up to twice the size, previously up to £25 a month now £50.

    Archive page for comparison:
    http://webarchive.nationalarchives.gov.uk/+/www.direct.gov.uk/en/MoneyTaxAndBenefits/ManagingMoney/SavingsAndInvestments/DG_10010450

    Also included out of work benefits e.g Incapacity Benefit, E.S.A
  • davidgmmafan
    davidgmmafan Posts: 1,459 Forumite
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    So let me get this straight the government is going to provided a not insubstantial bonus to encourage the people who are least able to save to save?

    Just checking.

    I know this is kinda a seperate issue but wouldn't ending derisory interest rates nudge more people to say?

    Also the percentage contribution paid by employers and employees to the best pensions are going up as part of the pension reforms. So no on balance the government isn't encouraging saving. It is putting another nail in the coffin of good quality pensions further eroding confidence in saving in general and pensions in particular.
    Mixed Martial Arts is the greatest sport known to mankind and anyone who says it is 'a bar room brawl' has never trained in it and has no idea what they are talking about.
  • Lorian
    Lorian Posts: 5,706 Forumite
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    How log before someone comes up with the bright idea of a matching website to pair up savers and donors, just a variation of peer lending, but with better (split) rates.....
  • Kim_kim
    Kim_kim Posts: 3,726 Forumite
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    longleggedhair wrote: »
    So lets get this straight, I'm going to work to pay my taxes so people in receipt of Benefits can be given a cash bonus to save. I'm disgusted, please remind me why I bothered to vote Conservative. This sounds like one of the stupid schemes Labour would have come up with.

    It's so very wrong isn't it!
  • Garethgrew
    Garethgrew Posts: 190 Forumite
    steve65e wrote: »
    In two years time, people who receive, and are able to save from, a benefit which is slowly being abolished, will get a £600 bonus if they meet the t&cs for another two years.

    Almost no-one will ever receive this.

    Come on, this is just a squirrel to divert attention from the really bad news on Wednesday.


    I'm going to go for it.

    You can't get any meaningful interest on savings since zero interest rates so nice to have a little return in savings.
  • 50Twuncle
    50Twuncle Posts: 10,763 Forumite
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    It should not be limited to WTC claimants - what about those of us, who for reasons of DISABILITY work less than the 16 hours needed
  • diamonds
    diamonds Posts: 6,048 Forumite
    Debt-free and Proud!
    50Twuncle wrote: »
    It should not be limited to WTC claimants - what about those of us, who for reasons of DISABILITY work less than the 16 hours needed

    It seems reported any government provided assistance will qualify, although not HB or CTX which may be paid by the DWP but administered by councils on their behalf.
    SO... now England its the Scots turn to say dont leave the UK, stay in Europe with us in the UK, dont let the tories fool you like they did us with empty lies... You will be leaving the UK aswell as Europe ;)
  • Flobberchops
    Flobberchops Posts: 1,279 Forumite
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    What a malarkey. It's not a *bad* scheme but for the average skint minimum wage worker the four years from today they'll have to wait to see their bonus materialise (hopefully, if the scheme is still in place, if the bureaucracy doesn't hold up or reject their claim, etc...) may as well be a lifetime.

    Why not just simplify things by offering a Help to Save regular savings account to anybody receiving Universal Credit, deposits capped at £50 a month, offering an AER of 50%? Or simply raise minimum wage by an equivalent figure?
    : )
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