New saving scheme proposed for those in debt

Following successful trials, the saving scheme could see the government match a pound for every pound saved, which should encourage poorer people to save, a report has claimed.

A Treasury source told the Financial Mail that the project is likely to emerge as part of Gordon Brown’s pre-budget report, which will be due out in the next two months.

It is said to be based on a similar scheme in Ireland in which the government there put in one euro for every four saved over a five-year term.

This resulted in £10.7 billion of savings being built up, something which many could use to help them clear debt.

Treasury minister Ed Balls said he was “keen to learn” from the Irish experience, according to the report, though fuller details such as how many people in debt who would be helped by this scheme were not given.