Policy
Saving Gateway
| Print page | Email |
The planned introduction of the Saving Gateway was scrapped in the Emergency Budget in June 2010.
The Saving Gateway was intended to be a scheme where the Government would pay a “match” equal to some proportion of an amount an individual has saved. It aimed to encourage people on low incomes who do not usually save to build up a financial asset and get into the habit of saving regularly.
"Matching" is a different way to incentivise saving. The size of the incentive to save under a matching scheme like the Saving Gateway would be the same for all participants. This differs from tax exemption (such as with ISAs) where the amount of the incentive depends on the individual's marginal rate of income tax.
Mutuals and the Saving Gateway
Many mutual deposit takers already make efforts to improve the financial literacy of their customers, and this aligns with the objective of the scheme to increase financial capability. Furthermore, mutuals offer a range of savings products that are open to all, many of which can be opened with as little as £1.
