What does 'bonus' mean in Schedule 2 of the Savings (Government Contributions) Act 2017?

In Schedule 2, 'bonus' means a government bonus paid under section 2 of the Savings (Government Contributions) Act 2017. Section 2 establishes the government's obligation to make contributions to Help to Save accounts. This definition applies consistently wherever the word 'bonus' appears throughout Schedule 2.

How much is the government bonus for Help to Save accounts under the Act?

Eligible Help to Save account holders can receive a government bonus of up to 50 per cent of the highest balance achieved in their account during the relevant bonus period. This bonus is the government top-up contribution payable under section 2 of the Savings (Government Contributions) Act 2017.

Why does Schedule 2 paragraph 1 define the term 'bonus' separately?

By defining 'bonus' at the outset of Schedule 2, the legislation avoids repeating the full description each time it refers to government payments. This ensures clarity and consistency throughout the Schedule, confirming that every reference to a 'bonus' means the government contribution under section 2 of the Act.

What is the practical effect of the bonus definition for Help to Save account holders?

In practical terms, the bonus is the government top-up that Help to Save account holders receive based on their savings. For example, if an account holder saves £800 over a bonus period, the government bonus would be £400, being 50 per cent of the highest balance. Schedule 2 references to 'bonus' mean this contribution.

Savings (Government Contributions) Act 2017 section Schedule 2 paragraph 1

Meaning of "bonus"

Schedule 2, paragraph 1 defines the term "bonus" as used throughout the Schedule.

The term "bonus" is given a specific definition for the purposes of Schedule 2
A bonus means a government bonus paid under section 2 of the Act
Section 2 provides for government contributions to Help to Save accounts
This definition applies consistently wherever the word "bonus" appears in the Schedule

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