Saving Gateway

As part of its Savings and Assets strategy, the Government has been developing and piloting since 2002, a new, targeted savings account called the Saving Gateway.

The Saving Gateway helps those who would otherwise have difficulty getting started on the savings ladder. By providing a more understandable, transparent and equitable framework of support for savers, the Government can provide greater incentives to save for those on lower incomes who benefit less, or not at all, from existing tax relief on savings. For many younger or low-income individuals, the account will provide an effective bridge to other forms of saving, such as Individual Saving Accounts (ISAs).

Saving Gateway pilot 1

The Government launched a number of Saving Gateway pilot projects in August 2002 in conjunction with the Community Finance and Learning Initiative, led by the Department for Education and Skills, in 5 locations across the country:

Tower Hamlets – East London
Gorton – East Manchester
Cumbria
Cambridgeshire; and
Hull

Halifax bank provided branch, staff and account management services in the pilot areas. The account lasted for 18 months and each pound saved by participants was matched by a pound from the Government. Participants could save a maximum of £25 per month up to an overall account limit of £375 of savings, providing a total of £750 with matching funds.

The last accounts matured in November 2004 and the final evaluation report was published in Budget 2005.

PDF file of Saving Gateway final evaluation report (400KB) Incentives to save: encouraging saving among low-income households - March 2005

Saving Gateway pilot 2

In the Pre-Budget Report 2004 the Chancellor announced a larger, £15 million Saving Gateway to be launched in 2005.

Evidence gathered through this pilot will be used to evaluate the future role matching could play in Government support for savings, both for those on low incomes and more generally.

In Budget 2005 the Chancellor announced that the second pilot was up and running and the first accounts were open. Halifax bank is providing banking facilities in six areas: Cambridgeshire, Cumbria & North Lancashire, East Yorkshire, Manchester, East London and South Yorkshire. MORI and the Institute of Fiscal Studies will conduct research and evaluation of the pilot scheme.

The pilot will test alternative match rates, different monthly contribution limits, the effect of an initial endowment, and the support of a wider range of community financial education bodies. It will also be made available to a wider range of income groups than the first pilot. The pilot will inform the development of matching as a central pillar in the Government’s strategy for promoting saving and asset ownership.

To find out more about the new, larger Saving Gateway visit www.direct.gov.uk/savinggateway where you can download the information booklets for the six areas participating in the pilot.

To read about the latest stage in the development of the Saving Gateway, as announced in the Budget 2005, delivered on 16th March 2005, see Chapter 5 of the Budget Report .

Further information

The Saving Gateway documents are available below in Adobe Acrobat Portable Document Format (PDF). If you do not have Adobe Acrobat installed on your computer you can download the software free of charge from the Adobe website. For alternative ways to read PDF documents and further information on website accessibility visit the HM Treasury accessibility page.

Saving Gateway

Saving Gateway pilot 1

Saving Gateway pilot 2

Further information

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