Calls for saving scheme to be extended

The expansion of a government scheme for matching the amount of money saved by lower-income Britons could provide a real boost to the nation’s savings, it has been claimed.

The Tax Incentivised Savings Association (TISA) said that the Saving Gateway initiative, which was introduced to encourage saving in households that are not engaged with mainstream financial services, could provide valuable incentives if it is rolled out on a national level.

Tony Vine-Lott, director general of TISA, said that Saving Gateway is “the next logical step” on a path begun by individual savings accounts and child trust funds.

“By targeting those who aren’t saving and providing new, simple incentives, we believe that we can realise nearly two million new savers,” he commented.

TISA said that it has been taking “a leading role” to help the government create and trial the scheme.

The government began piloting Saving Gateway in 2001.

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Isa investments hit highest level

The last tax year saw the highest number of subscriptions to Individual Savings Accounts (Isas).

Figures from the Tax Incentivised Savings Association (TISA) show that £33 billion was invested in Isas in the year 2006/07.

The total number of people now investing in Isas has reached 20 million, with £300 billion earning interest with tax breaks.

Tony Vine-Lott, director general of the TISA, said that the figures put paid to scare mongering about a lack of people saving.

“While there are headlines claiming the savings ratio is at its lowest ebb, we can see from official HMRC [HM Revenue & Customs] figures that Isas are booming.

“The 2006/07 tax year was a record – showing that tax incentivised savings remain hugely popular with millions of people.

“TISA will be looking to ensure the popularity of Isas remains high on the public policy agenda,” he added.

Isas can only be invested in ahead of the tax year beginning, so savers will have to wait until April next year to qualify for the next round.

Tags: Lott, director, savings, round, individual savings accounts, Tony Vine-, tax