Scottish Friendly is urging the government to introduce a Help to Save and Invest programme “of substance” in the Budget next week.
Following the prime minister’s announcement that the government intends to launch a Help to Save programme in the 2016 Budget on 16 March, the mutual is calling for David Cameron to not only be true to his word, but to ensure that the scheme has a real and measurable impact on the savings ability of low pay households.
Scottish Friendly is calling for the scheme to introduce a matched pound for pound contribution up to £500 a year for households on low pay.
In order to achieve maximum effect, the focus of saving for the long-term should not be reserved to just cash savings, but to also include the option of stocks and shares investments, it says.
Calum Bennie, savings spokesperson at Scottish Friendly, said: “With the recent seventh anniversary of low interest rates, it is vital that households are aware of all of their options for saving for their future, including investing in stocks and shares.
“This can only be achieved through clear consistent communication from the government that educates savers about alternatives to cash savings.”
Bennie is also calling for cross party support to ensure that such a programme, which Cameron has recently announced he plans to introduce, is a long-term success.
Bennie added: “While we have scant information on what David Cameron’s programme will comprise, few can deny that the rationale behind any programme launched to help those struggling to save will be anything but worthy.
“However, the record of governments on programmes aimed at helping and lower income groups to save is patchy at best.
“What is important, is that these schemes are not introduced in order to score political points. Time and again one highly lauded scheme is introduced by one government only to be abolished or watered down to drowning point by the next.”