Franky on Finance

The Saving Gateway scheme could hand you £600 for free over two years as long as an equal amount can be put forward over that period.  The aim of the scheme is to encourage those on low incomes to save by possibly matching their contributions.  It will not be launched until 2010 and the consultation stage will carry on until June this year.  The Government suggests encouraging saving by offering either 20p, 50p or £1 for every £1 saved.   The two pilot studies in 2002 and 2005 used these varying amounts but the Government has yet to decide on how much it will offer and is open to suggestions from members of the public at Saving Gateway Consultation, Room G67, HM Revenue and Customs, 100 Parliament Street, London SW1A 2BQ or julie.duffy@hmrc.gsi.gov.uk.  Evidence from the pilots however, showed that the ‘match rate’ did not need to be as high as £1 per £1 to encourage people to save.  Eligibility has been reined back to very low income levels but consideration is still made on an individual basis, so several people in the same household can sign up to the scheme.