Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether he is taking steps to improve (a) the Help to Save scheme and (b) how bonuses are calculated for that scheme.

The government launched a consultation on reforming the Help to Save scheme on 27 April 2023. The consultation seeks views from stakeholders on how the scheme could be reformed and simplified to ensure it: has longevity as a key savings product for working people on low incomes; encourages take-up in the target group; and provides the best value for taxpayers. The consultation can be found on gov.uk here: https://www.gov.uk/government/consultations/help-to-save-reform.

At present, Help to Save account holders can save a maximum of £50 a month and earn two tax-free bonuses over four years. After the first two years, the saver receives a bonus of 50% of the highest balance in their Help to Save account at any point in years one and two. After four years, they will get a further bonus of 50% of the difference between the highest balance saved in the first two years and the highest balance saved in the last two years.