A new scheme to encourage lower-income earners to build up savings through banks and post offices is to be rolled out nationally, the pre-Budget Report has confirmed – but wealthier savers using offshore banks may no longer have their cash protected by the UK government.

The Savings Gateway, a savings scheme for people claiming tax credits or benefits, will launch in 2010 with the government adding 50p to every £1 saved. According to the Treasury, the new accounts – which run for two years and be offered by banks, building societies, credit unions and posit offices - will provide around 8 million people on lower incomes with an additional incentive to save. Anyone receiving Working Tax Credits, Child Tax Credits (at the maximum rate), Income Support, Jobseeker’s Allowance or Incapacity Benefit will be automatically eligible for the scheme.