Personal Savings
The question
To ask the Chancellor of the Exchequer, what steps she is taking to increase levels of household savings.
Answered by Lucy Rigby
Everyone should have access to affordable and appropriate products for their financial wellbeing. The government is committed to breaking down barriers to opportunity and ensuring individuals and households have greater financial security.
This is why the government offers several ways to help people save and increase their financial resilience. The overall ISA allowance of £20,000 ensures that savers can put significant sums away in a tax-free savings account. For those who save outside of an ISA, the Personal Savings Allowance provides up to £1,000 of tax-free savings interest for basic rate taxpayers, and £500 for higher rate taxpayers.
The Help to Save scheme supports financial resilience for working people on low incomes by encouraging consistent, long-term saving and helping them build a financial buffer to plan and prepare for the future. The scheme is currently available to working individuals in receipt of Universal Credit, ensuring it remains targeted at its intended population.
As announced at Autumn Budget 2025, the government will make the Help to Save scheme permanent and, from April 2028, will expand eligibility to include all Universal Credit claimants who receive the child element, the caring element or both.
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