Help to Save Scheme

Lord Scriven Excerpts

Thursday 17th March 2016 Lords Chamber

[Lord Ashton of Hyde]

The difference in what the noble Baroness has said is that they would not have the 50% government bonus after two years.

[Lord Scriven (LD)]

My Lords, the New Economics Foundation report by Sarah Lyall notes that 15% of people in the UK—approximately 7.4 million people—have turned to debt for essential day-to-day spending. It also notes that 6% of people in the UK—approximately 3 million—use credit as a safety net on a weekly basis. Will the Minister please explain how those people will be able to save?

[Lord Ashton of Hyde]

We want to prevent people getting into debt. Half the people on low incomes do not have one week’s wages spare. If we get people into the habit of saving—in the scheme they have to save only £1 pound a month to start with; it can go up to £50 a month—it will prevent people getting into debt in the first place. The Government are subsidising that to incentivise people to do that.