Saving Gateway

Since 2001 the Government has been piloting a targeted savings account called the Saving Gateway.

Through the Saving Gateway, the Government is exploring the use of matching (a Government contribution for each pound saved) to encourage saving among lower-income households and to promote engagement with mainstream financial services. Matching 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.

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. Halifax bank provided branch banking facilities in 5 locations across the country:

Tower Hamlets (East London)
Gorton (East Manchester)
Cumbria
Cambridgeshire and
Hull

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 alongside 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 March 2005 and around 22,000 accounts were opened by July 2005. Halifax bank provided banking facilities in six areas: Cambridgeshire, Cumbria, East Yorkshire, Manchester, East London and South Yorkshire.

The pilot tested alternative match rates, different monthly contribution limits, the effect of an initial endowment, and a range of financial education support for savers. It was also made available to a wider range of income groups than the first pilot.

An interim evaluation report on the second pilot, produced by Ipsos MORI and the Institute of Fiscal Studies, 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

A final report on the second pilot was published in May 2007.

PDF file of Final evaluation report for second pilot (964KB) Final evaluation of the Saving Gateway 2 Pilot: Main Report - May 2007

A speech made by the Economic Secretary to the Treasury on the 25 May 2007 outlines the findings of the second Saving Gateway pilot.

We are also making available a technical report outlining the methodology that MORI and IFS used to conduct the pilot.

The Government now encourages external stakeholders to contribute to the debate and let us know your views on the way ahead.

The Government will make further announcements on the next steps for the roll out of the Saving Gateway in the Pre-Budget Report.

Further information

The Saving Gateway documents are available 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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