Context

Help to Save was introduced by the Government in 2018 as a scheme designed to encourage people on low incomes to build up savings, kick-start saving habits and promote financial inclusion by encouraging people to engage with mainstream financial services.

Help to Save customers are able to save up to £50 per calendar month in their Help to Save account for up to 48 calendar months. After 2 years, the Government will award a 50% bonus of the highest balance saved during this period, with individuals able to continue saving for a further 2 years to earn an additional bonus.

The study

In December 2019, HMRC commissioned BMG Research to undertake a programme qualitative and quantitative research, with the following objectives:

• Understand the demographic characteristics of those who have used the scheme.
• Measure customer satisfaction with Help to Save.
• Determine customers’ understanding of Help to Save, identifying any areas of confusion that may require further clarification.
• Understand customers’ perceptions and experiences of participating in Help to Save; in particular with the digital service, identifying any aspects that could be improved to promote saving through the scheme.
• Develop an understanding of customers’ saving behaviours and attitudes through their participation in the Help to Save scheme, and explore any behavioural change – now and in the future.

For the quantitative element of the study, HMRC provided Help to Save account holder contacts from HMRC’s Help to Save database. A representative sample was drawn from this comprehensive dataset and an online survey was conducted from 18 December 2020 to 17 January 2021. A total of 2,743 questionnaires were completed (an overall response rate of 9.1%).

The qualitative element comprised of 33 telephone depth interviews undertaken during March 2021 with respondents to the quantitative survey who had agreed to participate in follow-up research.

This research will help HMRC to understand the success of the programme in encouraging savings behaviour among lower income households as well as supporting improvements that can be made to the customer experience.

Key findings

Key findings from the research found that:

• Help to Save customers are predominantly working women with children at home – in line with the general profile of the tax credit population. A third are single parents.
• MoneySavingExpert was found to be a key source of awareness of the scheme.
• Customer views on Help to Save are positive, with a significant majority recommending the scheme to others.
• Help to Save has had a positive impact on savings behaviour across the board, but particularly among those who did not previously save regularly: they are significantly more likely than those who were regular savers prior to opening their Help to Save account to strongly agree that they save more, more often, find it easier to save and are more likely to save in the future than they were before they had the account.
• The scheme has also helped to shift mindsets, making people feel good about saving and increasing confidence that saving is possible and worthwhile.
• Help to Save customers are also as likely as regular savers to strongly agree that the account helps them to save and that it encourages them not to make withdrawals.
• For a minority, circumstances, including the impact of COVID-19, have made using the account impossible, while others forgot all about it due to the lack of communication. However, for many, Help to Save has provided the incentive to continue saving in the future.
• Levels of understanding of the scheme are relatively high, but there is some room for improvement, given that greater understanding is associated with higher levels of satisfaction, more regular payments and more positive reported impacts on saving behaviours.
• Customers reported that the account is very easy to open and use, however, there are clear signs that the app is easier to use than the website, and that it contributes to greater understanding of the scheme, more positive reported impacts on saving behaviour, and higher levels of satisfaction and recommendation.
• Receiving communications is also associated with greater understanding and more positive reported saving behaviours.
• However, it should be noted, in the wider savings context with very low levels of interest for ‘traditional’ savings products, this may limit the likelihood of continued saving once the Help to Save scheme ends for some.

Points to consider

• The methodology is comprehensive and thorough, with the qualitative and quantitative findings integrated in the report and this suggests triangulation of data captured.
  • A sample size of 2,743 research participants, broadly representative of the target group of savers, was achieved for the quantitative arm of the research. This sample used random selection, boosts for certain groups, and weighting of the data.
• This is specific to the UK savings market. However, the outcomes of this research may not be suitably transferrable to the wider savings market due to the unique nature of the Help to Save scheme (short-term and targeted at low-income savers).
• This research is relevant for savings account providers, government, policy makers and support agencies with an interest in how to engage people in regular saving, minimising withdrawals and increasing engagement with mainstream financial services.