A new national savings scheme for those on low incomes has come a step closer, following the draft Queen's Speech.
The government has announced a consultation on the Savings Gateway, a scheme which will help many Britons on low incomes plan financially for the future.
A cash account will be created for each saver under initial plans for the scheme, with the government matching an as-yet-undefined contribution for each pound saved.
The announcement, coming as part of the draft Queen's Speech, is the third such consultation on the scheme since it was first proposed in 2001.
Savings Gateway was welcomed by several organisations yesterday, including tax group TISA.
Announcing that the body would be contributing to the consultation, director-general Tony Vine-Lott commented: "We believe the Savings Gateway will encourage a whole new generation to get the savings habit and we are looking forward to working with HM Treasury on the detail of the [scheme]."
Individuals on certain types of tax credits, income support, jobseekers allowance and other benefits will be allowed to open a Savings Gateway account when the scheme comes online.
"Accounts will be offered by financial institutions such as banks and building societies and will run for two years," a government statement prior to the consultation announcement said.
"Third sector organisations such as credit unions, social housing providers and the Citizens Advice Bureau have expressed interest in providing information and support on the scheme."
