The Institute for Public Policy Research (ippr) suggests that many of the ocuntry’s poorest people would benefit significantly if the government were to offer 50p in every pound saved by those on benefits.
A pilot scheme has been so successful that the so-called Saving Gateway initiative should be introduced nationally as a way to help people avoid an uncomfortable debt management situation.
Kate Stanley, ippr head of social policy, said: “We know that these schemes can kick-start a long-term savings habit and help the poorest in society to look after themselves and their families.”
“When your income is less than £150 a week, every penny counts,” she added.
The same organisation revealed what it claimed to be a “two-way relationship” between the prevalence of poverty and disability in the UK.