ifs ProShare today called on the Government to increase the maximum amount employees can save in a Save-As-You-Earn employee share plan. ifs ProShare is a not-for-profit membership body that acts as the voice of the employee share plans industry in the UK.
In order to encourage people to save more, the Chancellor has announced that the savings limit for ISA's will now increase every year in line with inflation. However, no increases have been made to the savings limit for SAYE plans in the same way.
At present, the maximum amount of money an employee can save in an SAYE plan is £250 a month, a limit that has been in place since 1991. If this had been raised in line with inflation the limit would now stand at over £400.
Julie Richardson, Head of Employee Share Ownership at ifs ProShare, said:
Employee share plans are a simple, tax efficient method of saving that also offer the potential to achieve investment growth. We call on the Government to raise the limit on the amount of money that employees can contribute to SAYE plans to ensure that employees are able to save more.
Julie Richardson added: For many years ifs ProShare has been highlighting the benefits that employee share ownership can deliver for British businesses, from improved productivity and better employer/employee relations to improved staff retention rates. Furthermore by encouraging individuals to save, employee share plans offer a tangible way to address poor saving patterns in the UK.
