Savings crusade has lost steam
The Treasury has put the savings agenda on the back burner despite clamour for workers to be automatically enrolled into more financial products, Robbie de Santos has suggested.26 May 2014
The senior public policy advocate at StepChange, a debt advice charity, said the current government believed it had “done” the savings agenda by extending the Isa allowance in this year’s Budget, despite uncertainty about whether tax-related incentives will raise savings levels among young people and lower income groups.
He said: “We do not necessarily believe that the changes to Isas will benefit those in lower income brackets and young people. Research indicates that these groups do not recognise tax incentives, which tend to appeal to those who are saving regularly and on top of their tax-free allowances.”