Help to Save Reform

The HM Treasury has launched a high level consultation on the functioning and possible improvements to the government’s Help to Save Scheme following the announcement of an extension of the scheme up to April 2025.
To recall, the Help to Save Scheme is a government run program under which the savings of qualifying, low-income savers are matched by the government for a maximum period of four years and up to a maximum of £50 monthly saving. Currently, savers have to open a Help to Save account via the HM Revenue & Customs or the government through the use of mobile apps or the web. Bonus payments – the matching payments – are paid twice, once after the second year of savings and once after the forth year of savings on the maximum balance on the accounts. The bonus payments are paid directly to savers‘ own financial accounts held with financial institutions or building societies.
In this high level consultation now, the Treasury seeks feedback from stakeholders, including financial institutions and building societies as key facilitators of the scheme, on the general functioning of the scheme and on ways to improve it in an effort to make it as simple as needed to better incentivize fund saving. Specifically, the Treasury seeks comments on
– the adequacy of the eligibility criteria to participate in the scheme;
– a possible permission to open an account a second time (after the first one matured or was closed);
– the adequacy of the current payment method to deposit funds into the accounts or to withdraw fund from such;
– the adequacy of the four year saving period;
– the functioning of the current bonus structure, including the payment measure and frequency of bonuses; and
– possible measures that could further facilitate regular saving.