Saving Gateway
Since 2001, a new, targeted savings account called the Saving Gateway.
The Government is using the Saving Gateway to explore how matching and carefully tailored information can help promote saving among those who do not usually save. Matching - the Government providing a cash contribution to individual savings - provides a more understandable, transparent and equitable framework of support for savers, and greater incentives for those on lower incomes who benefit less from tax relief.
For many younger or lower-income individuals, the account will provide an effective bridge to mainstream savings products, 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, providing a total of up to £750 with matching funds.
The last accounts matured in November 2004 and the final evaluation report, produced by the Personal Finance Research Centre at Bristol University, 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 2004 Pre-Budget Report, the Chancellor announced a larger, £15 million Saving Gateway pilot. This second pilot was launched in 2005 and there are around 22,000 accounts open. announced. Halifax bank is providing banking facilities in six areas: Cambridgeshire, Cumbria & North Lancashire, East Yorkshire, Manchester, East London and South Yorkshire.
The pilot is testing alternative match rates, different monthly contribution limits, the effect of an initial endowment, and a range of financial education support for savers. It has also been made available to a wider range of income groups than the first pilot.
To find out more about the Saving Gateway visit www.direct.gov.uk/savinggateway where you can download the information booklets for the six areas participating in the pilot.
MORI and the Institute of Fiscal Studies are conducting research and evaluation of the Saving Gateway. An interim evaluation report on the second pilot was published in July 2006.
PDF file of Interim Evaluation of Saving Gateway 2 (790KB) A report prepared for government by Institute of Fiscal Studies (IFS) & Ipsos MORI Social Research Institute - July 2006
Evidence gathered through this pilot will be used to evaluate the future role of matching in Government support for savings.
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.
Related links
Saving and Assets for All April 2001
PDF file of Delivering Savings and Assets (190KB) November 2001
PDF file of Savings Gateway Terms (10.3KB)
PDF file of Savings Gateway Pamphlet (145KB)
PDF file of the Evaluation of the CFLI and Saving Gateway Pilot Projects (162KB) Interim report on the Saving Gateway pilot project - December 2003
PDF file of Saving Gateway final evaluation report (400KB) Incentives to save: encouraging saving among low-income households - March 2005
PDF file of Interim Evaluation of Saving Gateway 2 (790KB) A report prepared for government by Institute of Fiscal Studies (IFS) & Ipsos MORI Social Research Institute - July 2006