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  • FIRST POST
    • MSE Luke
    • By MSE Luke 14th Mar 16, 11:47 AM
    • 270Posts
    • 77Thanks
    MSE Luke
    MSE News: Help to Save scheme to offer £1,200 bonus to low-paid workers
    • #1
    • 14th Mar 16, 11:47 AM
    MSE News: Help to Save scheme to offer £1,200 bonus to low-paid workers 14th Mar 16 at 11:47 AM
    Low-paid workers who put money away in a new savings scheme will be rewarded with a bonus of up to £1,200...
    Read the full story:
    'Help to Save scheme to offer £1,200 bonus to low-paid workers'

    Click reply below to discuss. If you havenít already, join the forum to reply. If you arenít sure how it all works, read our New to Forum? Intro Guide.
Page 2
    • themanfromamarillo
    • By themanfromamarillo 14th Mar 16, 7:05 PM
    • 111 Posts
    • 49 Thanks
    themanfromamarillo
    I suspect using benefit payments as a qualification for this is partly related to saving money on admin. If you have a means-tested savings scheme it makes life easier for you if you pick some group of people who've already been means-tested (i.e. those on benefits) rather than do a whole new round of means-testing yourself.
    • longleggedhair
    • By longleggedhair 15th Mar 16, 2:44 AM
    • 344 Posts
    • 417 Thanks
    longleggedhair
    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
    • By redux 15th Mar 16, 10:01 AM
    • 18,711 Posts
    • 25,036 Thanks
    redux
    This sounds like one of the stupid schemes Labour would have come up with.
    Originally posted by longleggedhair
    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
    Last edited by redux; 15-03-2016 at 10:12 AM.
    • bristolleedsfan
    • By bristolleedsfan 15th Mar 16, 10:37 AM
    • 7,543 Posts
    • 9,650 Thanks
    bristolleedsfan
    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
    Originally posted by redux
    Also included out of work benefits e.g Incapacity Benefit, E.S.A
    • davidgmmafan
    • By davidgmmafan 15th Mar 16, 11:37 PM
    • 1,446 Posts
    • 520 Thanks
    davidgmmafan
    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
    • By Lorian 15th Mar 16, 11:47 PM
    • 4,591 Posts
    • 2,645 Thanks
    Lorian
    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
    • By Kim kim 16th Mar 16, 6:26 AM
    • 2,376 Posts
    • 3,508 Thanks
    Kim kim
    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.
    Originally posted by longleggedhair
    It's so very wrong isn't it!
    • Garethgrew
    • By Garethgrew 16th Mar 16, 10:45 AM
    • 189 Posts
    • 31 Thanks
    Garethgrew
    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.
    Originally posted by steve65e

    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
    • By 50Twuncle 16th Mar 16, 11:17 AM
    • 8,726 Posts
    • 2,118 Thanks
    50Twuncle
    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
    • By diamonds 16th Mar 16, 11:25 AM
    • 5,981 Posts
    • 1,601 Thanks
    diamonds
    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
    Originally posted by 50Twuncle
    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
    • By Flobberchops 16th Mar 16, 12:07 PM
    • 855 Posts
    • 676 Thanks
    Flobberchops
    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?
    • Jhoney
    • By Jhoney 16th Mar 16, 2:09 PM
    • 1,190 Posts
    • 793 Thanks
    Jhoney
    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?
    Originally posted by Flobberchops
    Because there is no way to monitor how it is spent (for future reductions to benefits/cuts) and because GO knows that it will not be saved just like the rest of the money people recieve but choose currently not to save.

    It's not a very well thought out idea, although I am actually pleased they are trying to do something!

    Lack of support for the young, sick and disabled people of this country is appalling.
    Last edited by Jhoney; 20-03-2016 at 10:48 AM. Reason: clarity
    • Over62
    • By Over62 16th Mar 16, 3:28 PM
    • 52 Posts
    • 22 Thanks
    Over62
    If a person on benefits can afford to save £50 per month, are we not paying them too much in benefits?
    • Malthusian
    • By Malthusian 16th Mar 16, 3:56 PM
    • 4,991 Posts
    • 8,067 Thanks
    Malthusian
    If a person on benefits can afford to save £50 per month, are we not paying them too much in benefits?
    Originally posted by Over62
    A fair question but the answer is no, as people on benefits have one-off expenditures (boiler breaking down etc) to pay for just like the rest of us. There is nothing wrong with people on benefits having rainy day savings, indeed they probably should. It saves them having to apply for emergency loans or go to Wonga.

    Of course, this scheme isn't much use for rainy day savings, as if that's what you're saving for you would expect a "rainy day" to arrive and the savings to be spent before you became eligible to claim your government bonus. But it's no surprise that it doesn't make sense as it's a stupid reheated New Labour idea.
    • Garethgrew
    • By Garethgrew 18th Mar 16, 9:20 AM
    • 189 Posts
    • 31 Thanks
    Garethgrew
    What interest rate does it work out at? Can you get any interest on the £50month as well as the bonus after 4 years?
    • 50Twuncle
    • By 50Twuncle 17th Sep 16, 3:36 PM
    • 8,726 Posts
    • 2,118 Thanks
    50Twuncle
    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.
    Originally posted by diamonds
    Sorry for the delay in responding
    Could you please elaborate on this answer ?
    Are you saying that, for example DLA counts towards income ?
    If so - how does a claimant get this added benefit ?
    I work for 10 hours per week on virtually minimum pay to top up my works disability pension and DLA - So any added income would be welcome
    Last edited by 50Twuncle; 17-09-2016 at 3:38 PM.
    • darkovo
    • By darkovo 12th Apr 18, 9:05 AM
    • 153 Posts
    • 34 Thanks
    darkovo
    This is now live:
    https://www.tax.service.gov.uk/help-to-save/about-help-to-save

    Not sure if there's a newer thread on MSE, I couldn't find one!
    • Poppycat1
    • By Poppycat1 25th Apr 18, 11:55 AM
    • 150 Posts
    • 562 Thanks
    Poppycat1
    I have just opened one of these. Really easy to do via Gateway. Sounds great.

    £50 x 12 = £600 x 4 = £2400
    Plus £1200 bonus at end.
    Total £3,600
    MFW 2018 number 25
    10% Target for 2018 = £12,449.90
    Jan - £3,000, Feb - £1,449.90, March £350, April - £650, Oct - £2,500, Nov - £2250, Dec - £?
    Total = £10,199.90/£12,449.90 £2,250 left to overpay
    • Petriix
    • By Petriix 11th May 18, 11:55 AM
    • 5 Posts
    • 1 Thanks
    Petriix
    I've just opened one. There was a link at the bottom of the page after renewing my tax credits. The interest works out at just under 19% PA (20.6% EAR). That makes it significantly better than overpaying the mortgage and marginally better than the rate on my credit card.

    It looks like you can withdraw the money at any time, but you would ultimately be reducing the bonus you would get in the end. Ideally I'll find a way of paying in the full amount each month for the whole 4 years; but with the safety of being able to access the money in an emergency or just stop paying in if necessary. Looks like there is no risk to this so it's a no-brainer.

    I need to find out if it's one account per family or if both adults can get one each.
    • Dandytf
    • By Dandytf 31st May 18, 9:37 PM
    • 1,672 Posts
    • 454 Thanks
    Dandytf
    I'm due to make 3rd payment tomorrow via standing order.
    Hopefully across 2-4 yrs gain max savings allowance.
    I'ts not the 'bonus' that motivates me more that this type of savings account could have been made available years ago.
    I'm not at the stage where I have forgot about the monthly 'debit' though I get a bit of encouragement if I log once every few weeks.
    This type of savings account shoiuld be heavily advertised on t.v. And media sources etc to allow as much qualified people to open and account if required.
    I'ts form Gov it's online -no searching for docs etc to visit a bank branch required.
    Nice bit of competition for mainstream banks that entices people to save.
    Good luck mser's -let's continue to use this thread to log progrsss, I'll start maybe next few days when my latest debit is 'saved'
    This saving is a new experience for me which I'm enjoying
    Last edited by Dandytf; 31-05-2018 at 9:40 PM.
    sc dmp 2012 13k Jan 2018 8840 paid. 60% approx.
    Mid 2018 Help2save 50 uk pounds per month
    Mid 2018-Virgin Money E-saver V11 -n/a-t.b.c.
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