<p><p>The Saving Gateway is a government initiative aimed at encouraging savings behaviour among people who do not usually save. Each pound placed into a Saving Gateway account is matched by the government at a certain rate and up to a monthly contribution limit. Matching provides a transparent and understandable incentive for eligible individuals to place funds in an account. An initial pilot of the Saving Gateway - SG1 - has already been conducted and evaluated. In the December 2004 Pre-Budget Report, the Chancellor of the Exchequer announced a new, larger scale, pilot of the Saving Gateway - SG2. Almost 21,500 individuals have opened SG2 accounts across six areas of England. The design of these accounts - in terms of the match rate and monthly contribution limit - varies across these areas. Alongside the financial incentive to place funds in a SG2 account, the pilots also offer financial education.</p></p>
Authors
Carl Emmerson
Carl, a Deputy Director, is an editor of the IFS Green Budget, is expert on the UK pension system and sits on the Social Security Advisory Committee.
Matthew Wakefield
Matthew is Associate Professor at the University of Bologna focusing on consumption and savings choices and how policy affects them.
Gemma Tetlow
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