Banks welcome gateway to greater savings

Britain's banks have pledged their support for the Government's Savings Gateway Accounts Bill, which starts its progress through Parliament today.

The scheme aims to encourage people on lower incomes to save by topping up every pound saved with a Government contribution. It aims to kick-start a saving habit and to introduce more people to mainstream financial services - a key objective of the Government's financial inclusion agenda.

BBA Chief Executive Angela Knight said: "It has always been a frustration that the very people who would benefit most from regular saving are those least able to do so. When every penny has to be used to maintain a household, there is no opportunity to save. The Savings Gateway initiative is an innovative way to help people to do more to secure their financial futures by matching their efforts with a Government contribution.

"Britain's banks are committed to helping this vital initiative to work, and look forward to contributing to its progress through Parliament to bring about an effective and simple solution."