New savings scheme to give low-paid employees 50 pence for every pound they invest

John Glen insisted that the scheme was intended to make savings possible for every hard-working person in this country.

Up to four million low-income people can benefit from a new savings scheme whereby investors receive 50 pence from the government for every £ 1 they pay.

Help to Save allows people to pay in up to £ 50 per month for four years, with a maximum saving of £ 2,400, resulting in a total bonus of £ 1,200.

HMRC started the scheme and said that it is easy to use, flexible and secure & # 39; would be. It is meant to help people with low incomes build a rainy day & # 39; fund and 'encourage saving behavior and habits & # 39;

How much is deposited in Help to save accounts and when is the account holder and they do not have to pay each month to receive a bonus.

John Glen insisted that the scheme was intended to make savings possible for every hard-working person in this country.

John Glen insisted that the plan was designed to make saving possible for every hard-working person in this country & # 39;

John Glen, economic secretary of the Treasury, said: "Savings must not be a luxury, they are an essential part of planning for the future. But for some it can be a decade each time to take a step back.

& # 39; Whether you save to bring the family on the much-needed vacation, or to take the next step in life, Help to Save is meant to make savings possible for every hard-working person in this country. ;

Help to Save is available for working people with a tax credit and for Universal Credit who also earn at least £ 6,514 per year. The scheme was announced by the then Chancellor George Osborne in the March 2016 budget and has been the subject of an eight-month trial with 45,000 people from January this year.

A spokesperson for the HMRC said: "There is no fixed limit on income because it depends on your circumstances (and those of your partner). For example (it would be) £ 18,000 for a couple without children or £ 13,100 for a single person without children – but it can be higher if you have children, pay for approved childcare or one of you is disabled. & # 39;

The bill was welcomed by charities that have previously expressed concerns about how few households save for a rainy day.

In September 2008, before the fall of Lehman Brothers, the average bank account paid an interest rate of 3.1 percent, which now amounts to only 0.43 percent.

In September 2008, before the fall of Lehman Brothers, the average bank account paid an interest rate of 3.1 percent, which now amounts to only 0.43 percent.

In September 2008, before the fall of Lehman Brothers, the average bank account paid an interest rate of 3.1 percent – which now stands at only 0.43 percent

It takes about five minutes to open an account online. They are limited to one per person and admissions are always allowed, although they may affect the final bonus.

The bonus is paid in two parts – 50 percent after two years and the other half at the end of four years. Savers can spend the bonus in any way they want.

Meanwhile, figures show that savers have suffered a lost decade since the financial crisis, because record-low interest rates have destroyed returns.

In September 2008, before the fall of Lehman Brothers, the average bank account paid an interest rate of 3.1 percent – that is now only 0.43 percent. A saver who has kept £ 10,000 for the past decade would have only £ 10,852 today.

Most lenders have reduced interest rates on their current accounts to zero.

This means that today £ 164 billion is being held on bills that do not pay interest, according to Bank of England data, against £ 48 billion in September 2008.

Laith Khalaf, from investment firm Hargreaves Lansdown, who has uncovered the data, said: "Cash savers are one of the big losers of the financial crisis. & # 39;

For more information about Help to save to www.gov.uk/helptosave, call 0300 3227093.

.