What does section 2 of the Savings (Government Contributions) Act 2017 require?

Section 2 establishes the legal obligation to pay government bonus amounts when an entitlement arises on a Help-to-Save account. The bonus must be paid by the designated paying authority, which is the Treasury by default unless other arrangements have been made to delegate the responsibility.

Who is the paying authority for Help-to-Save government bonuses under United Kingdom law?

By default, the paying authority is the Treasury. However, if the Treasury has put arrangements in place, responsibility transfers to either HMRC or the Director of Savings (National Savings and Investments). This provides administrative flexibility so the body best placed to manage payments can do so.

Can HMRC or the Director of Savings make Help-to-Save bonus payments instead of the Treasury?

Yes. Where arrangements exist for HMRC or the Director of Savings (NS&I) to handle Help-to-Save bonus payments, the responsibility transfers from the Treasury to whichever of those bodies has been designated. For example, if HMRC is designated, it becomes the paying authority for all bonuses.

What role does Schedule 2 play in relation to section 2 of the Act?

Schedule 2 of the Savings (Government Contributions) Act 2017 provides further interpretive detail for section 2. It defines key terms used in the section and sets out supplementary rules governing the operation of Help-to-Save accounts more broadly under United Kingdom law.

Savings (Government Contributions) Act 2017 section 2

Government contributions to Help-to-Save accounts

Section 2 establishes the obligation to pay government bonus amounts on Help-to-Save accounts and identifies which authority is responsible for making those payments.

Where a government bonus entitlement arises on a Help-to-Save account, that bonus must be paid by the designated paying authority.
The Treasury is the default paying authority responsible for government bonus payments.
If arrangements are in place for HMRC or the Director of Savings (NS&I) to make the payments instead, then the responsibility transfers to whichever of those bodies has been designated.
Schedule 2 of the Act provides further detail on how this section is to be interpreted and sets out additional rules relating to Help-to-Save accounts.

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