Monday, 14 March 2016

Help to Save criticised

The debt charity, Stepchange, has criticised the government's new Help to Save scheme for low paid workers, saying they will have to wait too long for the benefits.

The proposals, which will be fleshed out by the Chancellor in this week's Budget, would provide a 50% bonus to those who manage to save up to £50 a month.

As many as 3.5m people in low paid work and receiving working tax credit or universal credit would qualify, with the maximum level of help set at £1,200.

However, they will have to save for two years before getting any bonus.

Stepchange says such a wait may see families overtaken by events as they dip into funds for emergencies.

The charity warns that the thought of losing the bonus could act as a disincentive to save in the first place.

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