The Chancellor confirmed the launch of a new Help to Save scheme for people on low incomes during today’s Budget.
It provides a 50% government bonus on up to £50 of monthly savings and could benefit up to 3.5 million people.
Martin Noone, managing director of workplace health & protection at Legal & General, said: “The government’s ‘Help to Save’ scheme outlined in the Chancellor’s Budget will provide financial support to those who choose to contribute, and can be used to help with the cost of living should they be unable to return to work due to a long-term illness or injury.
“The problem, however, is that the amount saved under this arrangement will be insufficient to fully replace an individual’s income should they be unable to work.
“New research from Legal & General has shown there is a misconception in the UK over the number of people who are off work long-term every year, with the majority of people not realising the volume of workers that are actually impacted.
“In addition, many people also overestimate the amount that Statutory Sick Pay currently provides, with only one-in-four knowing that it is £88.45 per week.”
