Savings (Government Contributions) Bill

In the Budget this year the Chancellor announced plans to help people to save. Two new savings accounts would be introduced. Firstly. a new Lifetime ISA (LISA), which can be opened by people aged between 18 and 40 from April next year. Individuals will be able to save up to £4,000 each year and receive a government bonus of 25%. The money could be used to buy a first home worth up to £450,000 or withdrawn after age 60. Funds withdrawn for other purposes would attract a 5% charge and lose the government bonus.

Secondly, anew Help-to-Save account for people in receipt of Universal Credit with minimum weekly household earnings equivalent to 16 hours at the National Living Wage, or those in receipt of Working Tax Credit. This would work by providing a government bonus on up to £50 of monthly savings. The bonus would be paid after two years, with an option to save for a further two years. There would be no restrictions on how the funds were used.

This Bill had its Second reading in the Commons yesterday and was passed without any opposition.

The main business in the Commons today is a debate on the proposed new Charter for the BBC.