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The first Saving Gateway accounts will be available in July 2010, encouraging people on low incomes to save money. The Chancellor has guaranteed that everyone will have the right to a basic bank account. In pensions, there are changes to the Working Tax Credit rules for people aged over 60.
The first Saving Gateway accounts will be available in July 2010. It’s a cash savings scheme for people of working age who are on low incomes. The government will add 50 pence for each £1 saved into a Saving Gateway account. You will qualify for an account if you get certain benefits or tax credits.
The government made a guarantee that everyone can have a basic bank account. This will mean up to one million more people will have access to bank accounts over the next five years.
The number of hours people aged 60 have to work to qualify for Working Tax Credit will be reduced. This means people over 60 who work at least 16 hours per week will be able to claim Working Tax Credit.
The government is going to look at the law that gives employers the right to make people retire at 65. The government is looking at the following options:
No changes will be made before April 2011.
From April 2011 tax relief on pension contributions will be restricted for people on gross incomes of £150,000 or more each year, subject to an income floor of £130,000 a year.
Instead of getting back the full amount of tax on pensions contributions, the amount of tax you get back will gradually reduce down to 20 per cent.
How much tax relief you get will depend on how much more than £130,000 you earn.
If you earn £180,000 or more per year, you will only get 20 per cent tax back on your pension contributions from April 2011.
