Assessing the Government’s policies to encourage household saving

The cost of living crisis highlights the long-standing issue of there being too many UK families with too little in savings. This is not a reflection of policy neglect: there have been many schemes over recent decades to encourage families to save more, covering both measures which cut taxes on savings returns and those which provide direct bonuses for savers.

However, little attention has been paid to who does – and does not – benefit from the current schemes. This briefing note fills that gap by looking at existing government policy to encourage saving and uses this evidence to outline recommendations that could improve levels of saving and financial resilience particularly among low-income individuals.