British Prime Minister David Cameron has announced a new savings scheme in a bid to reward low-paid workers who take part, with a bonus of up to £1,200. The 'Help to Save ' accounts will be launched later this year to encourage people on low incomes to save, and will be available to employees receiving in-work benefits. The scheme will enable around 3.5 million employees on working tax credits or universal credit to save up to £50 a month and get a bonus of 50 per cent. It will help them earn a maximum of £600 after two years. People can also subscribe for an additional two years.
The move comes after officials claimed nearly half of Britain's adults have set aside less than £500 for emergencies. Cameron said he wants to give hard-working people extra support to fulfil their potential and transform life chances across the country. He said, “That's what these new measures will achieve- helping someone start a savings fund to get them through difficult times, giving people on low incomes a pay rise and making sure teenager have the experience and networks to succeed.” Changes to the national minimum wage will further boost almost 500,000 young workers' pay by an average of £450. Under 18s will see national minimum wage rates increase from £3.87 to £4.00 an hour, while those in apprenticeships will gain a rise to £3.40, an hourly increase of 10p.
