With the rise of life expectancy and the decrease of house affordability, the government has become increasingly interested in (or concerned about) the amount of money people are saving towards home ownership and retirement. This has led to several new initiatives to get people saving.
Examples include automatic pension enrolment, enforced as of 2012, which requires employers to enrol their employees onto a pension scheme and make minimum contributions to their employees’ pension fund. Another example is the introduction in April 2016 of the Personal Savings Allowance (PSA), which means that any interest gained from a savings account will not be taxed, up to a limit of £1,000 gained in interest for basic rate taxpayers.
Although many of these measures were implemented before the current government, the government has been active in promoting automatic pension enrolment, and the subsequent roll-out to self-employed people too.
Remember, the pledge here is simply to “promote”, not to legislate. And this includes long-term savings and pensions products.
We can definitely tick “pension products” off the list, so this policy is ‘in progress’. But we can’t yet say the same for “long-term savings” products. However, plans for trailing ways in which self-employed people can save, it’s likely this promise is near completion. We’ll update this page when there is more progress. Follow this policy to hear first.
Love the detail?
- National life tables, UK: 2015 to 2017 – Office for National Statistics
- Housing affordability in England and Wales: 2017 – Office for National Statistics
- Pensions and long-term savings trials for self-employed people – Gov.uk
- Help for millions of self-employed to save and plan for retirement – Gov.uk
- Automatic Enrolment Review 2017: Maintaining the Momentum – Gov.uk
- Employers, Automatic Enrolment – The Pensions Regulator
- Personal Savings Allowance: latest information – Gov.uk
- Income Tax rates and Personal Allowances – Gov.uk
- Lifetime ISA – Gov.uk