Summary
The UK government plans to expand the Help to Save scheme, a savings program for people on low incomes, and make it permanent. An additional 1.5 million people will be eligible from 2028, and the expansion will be announced in the upcoming Budget. At the same time, the government is expected to reduce the annual tax-free savings limit for cash Individual Savings Accounts (Isas).
Key Facts
- The Help to Save scheme is for people on low incomes, and offers a 50p bonus for every £1 saved.
- About 3 million people on universal credit are currently eligible for the scheme.
- The scheme will expand to include an extra 1.5 million parents and carers from 2028.
- The Help to Save scheme will become a permanent program, announced in the Budget.
- Up to £50 a month can be saved in the scheme, with bonuses paid after two and four years.
- The cash Isa annual allowance may be reduced from £20,000 to £12,000.
- The Treasury hopes that lowering the Isa limit will encourage more people to invest.
- Critics are concerned that the change could complicate savings and affect the Isa brand.
