• Around 126,000 people have made a deposit using the Help to Save scheme, up 26% in the past six months (https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/868565/Help_To_Save_February_2020.pdf)
• Those who pay into a Help to Save account benefit from a bonus of 50p for every £1 saved
• The average monthly deposit per person remains at £47 – close to the maximum £50 a month limit
• Government initially claimed up to 3.5 million could benefit from the scheme
Tom Selby, senior analyst at AJ Bell, comments:
“Help to Save was hailed by the Government as a flagship reform to help low-paid people save for a rainy day.
“While it is positive 126,000 people have utilised the scheme since it launched in 2018, this remains a fraction of the 3.5 million former Chancellor George Osborne claimed could benefit.
“Furthermore, while 162,000 accounts have been opened, only 86,000 people are paying in each month, with the average monthly deposit standing at £47.
“Given Help to Save is aimed directly at those on the lowest incomes, it is perhaps little surprise demand has been so low. If you are on benefits and struggling to make ends meet, even a significant savings carrot will make little difference to your spending decisions.”
You can read more about Help to Save and how it works here: https://www.gov.uk/get-help-savings-low-income
