Following the news that the government has extended Help to Save until 2025, Rachael Griffin, tax and financial planning expert at Quilter, has commented:
“The news that HM Revenue and Customs (HMRC) is extending the Help to Save scheme until April 2025 is a sensible decision given the state of the nation’s finances at the moment with people needing all the help they can get. Over 359,200 people have already reaped the benefits of the scheme since its launch in 2018 and a potential 3 million more individuals can be positively impacted by this extension.
“In the current economic climate, it becomes even more crucial to still carve out a portion of income for savings to help ward against any big financial shocks that can cause people to go into a spiral of debt. Saving is not just about tucking away pounds for a rainy day but a long-term commitment that has a profound effect on our financial health and wellbeing and protects us against unexpected bills like a broken down car or boiler repair. It’s a way of taking control and a shield against uncertainty. With the ‘Help to Save’ scheme, it is achievable even for those with smaller, more variable incomes.
“Yet, this is just one piece of the puzzle. The effectiveness of such schemes will be amplified when combined with comprehensive financial education. Understandably, the fluctuations in income and the pressure from the cost of living can pose challenges. However, armed with financial literacy, low-income earners can navigate these obstacles with a better understanding and a higher degree of confidence.
“While the scheme or saving in general won’t solve the cost of living crisis, improving financial habits are an essential step towards empowering individuals to take charge of their finances and schemes like this help to ingrain these habits.“