The Government is to launch a ‘help to save’ programme for people on low incomes designed to enable them to build up a “rainy day” fund.
In a wide-ranging speech on boosting life chances focused on the poorest in society, Prime Minister David Cameron confirmed a new programme will be unveiled later this year to encourage the low paid to save.
He said: “We’ll also to do more to help people save – and help build families’ financial resilience. Those with no savings at all have no buffer – no shock absorber – for when unexpected events hit.
“Saving is a habit that should start early – so we are going to expand the Church of England’s LifeSavers project which helps primary schoolchildren to manage money and learn how to save and we will look at what more we can be done on this vital area.
“So I can announce today that we intend to bring forward a ‘help to save’ scheme to encourage those on low incomes to build up a rainy day fund, and full details of this scheme will be announced at the Budget.”
The Government’s flagship savings initiative, automatic enrolment, has boosted the number of people saving in the UK since it was launched in 2012. However, only people earning more than £10,000 qualify.