Gateway To Free Government Cash

2 December 2008

The government are making strides in an attempt to turn low-income families on to the benefits of saving cash instead of squandering it with the introduction of Gateway in 2010.

The scheme was piloted last year and will be launched across the country in two years time. The facts are these – if you’re one of the estimated eight million Britons on working tax credits, child tax credits paid at the maximum rate, income support, incapacity benefit or jobseekers allowance, you’ll be eligible and the government will top up whatever you save in a Gateway account to the tune of 50p in the pound.

It’s not unlimited – the maximum you can save in a year is £300 and the accounts last for just two years, but savers will have the option to transfer their cash into an ISA, assuming they’ve caught the saving bug by then. So that’s £600 free cash for the poor, and in the same breath as the top rate of tax jumps to 45%. Robin Hood instead of Eyebrows anyone?

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