Saving Gateway - what is it and who qualifies
From 2010, there will be a new government supported cash saving account called the 'Saving Gateway'. It is for people of working age who are on lower incomes, and aims to help kick-start a saving habit. The government will add 50 pence for each £1 saved into Saving Gateway accounts. You will qualify for an account if you get certain benefits or tax credits.
Who can get the new accounts?
You will be able to open a Saving Gateway account if you get any of the following:
- Income Support
- Jobseeker’s Allowance
- Incapacity Benefit
- Employment Support Allowance
- Severe Disablement Allowance
- Tax credits - if you have a household income below £16,040
- Carer’s Allowance (you must be in receipt of the allowance, not just have an underlying entitlement)
How the accounts will work
When the Saving Gateway launches in 2010, if our records show you qualify for an account, you will be sent a letter of invitation, an information booklet and a list of Saving Gateway providers by HM Revenue & Customs. You will be able to take your letter to any approved Saving Gateway provider and open your account.
You will then be able to save as much as you like into your account for two years, with a top limit of £25 a month. At the end of the two years the government will add 50 pence for each £1 you've saved.
Don’t worry if £25 sounds too much - every pound you save will earn you an extra 50 pence. And you will be able to withdraw your savings should you need to without affecting the government reward you have earned up to that point. Remember you’ll only be able to open one Saving Gateway account per lifetime, so make sure you open one at a time that’s right for you.
What happens next?
There will be more information about Saving Gateway accounts nearer to the launch in 2010, including who can get one, how to open one, and how it works. You don't need to do anything else in the meantime. But it might be worth checking to see if you qualify for any of the benefits or tax credits mentioned above.
Find out what benefits you might be entitled to on the Directgov website
If you were involved in the Pilot Scheme
The Saving Gateway was piloted in six areas of the country. Accounts were open from March 2005 to March 2007, and individual accounts lasted for 18 months.
If you were involved in the pilot you will still be able to open an account in 2010, if you meet the eligibility criteria shown above.
If you had a pilot scheme Saving Gateway account and have any queries about your match payment or any other aspect of your account, please contact your local Halifax branch or call the Halifax helpline on Tel 08457 263 646.
More useful links
Learn more about savings and investments on the Directgov website
Find out how to plan your personal finances on the Directgov website
