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Saving Gateway Accounts Bill

The saving gateway is a long-term programme to help those on the lowest incomes. It will be implemented in 2010 and it is intended in the long term to help people who otherwise might not save at all to build up some savings. The VAT cut was introduced as a temporary fiscal stimulus in order to support the economy right now by putting money into people's pockets. Some will have to use the money they save from the VAT cut to pay down debts or deal with problems in their lives while others will be able to spend their money. It is part of a temporary fiscal stimulus, which is about supporting the economy in the short term. Those on the lowest incomes are the least likely to have savings; 36 per cent. of households with weekly incomes of £100 to £200 and 43 per cent. of those with less than £100 a week have no savings at all. We all know the advantages that come from building up a stock of savings: they can provide people with independence and security if things go wrong and with comfort in old age, and make it easier to deal with unexpected events and to plan for things such as presents for the kids at Christmas or putting down a deposit on a house. We all know about the problems that can be caused by a lack of savings.