Help to save – consultation on implementation
This Government consultation sought to expand upon its idea to introduce, by April 2018, a ‘Help to Save’ scheme for eligible claimants of working tax credit or universal credit. The scheme will allow those eligible to save up to £50 a month and receive a 50% Government bonus on top of the amount they have saved. The LITRG’s response highlights a number of concerns and suggests that the Government consults further on the detail of the law covering the scheme, as the eligibility criteria remain unclear – particularly as regards what is meant by being ‘in receipt of’ the qualifying benefits and as to the position for joint claimants. We also recommend that any return on Help to Save accounts is specifically exempted from income tax.