Less than 2% of the 3.5 million people thought to be eligible for the Help to Save scheme are currently paying into it, HMRC statistics have shown.

Five months after launch, just 90,750 accounts have been opened, and only around two thirds have had money paid in (64,350).

The average monthly deposit is £47, and 88% of deposits are for the maximum of £50 a month. In total, £13,348,000 has been paid, and £1,115,000 withdrawn. A total 8,400 people have made at least one withdrawal.

“Getting out of the starting blocks, Help to Save feels more like an octogenarian egg and spoon race than a 100 metre final. Of the 3.5 million people thought to be eligible for the scheme, fewer than 65,000 are paying into it – that’s less than 2%,” Hargreaves Lansdown personal finance analyst Sarah Coles has said.

“It’s still very early days for the scheme, and we know from previous launches like the Junior ISA and the Lifetime ISA that it takes brand new markets some time to build momentum. However, Help to Save is facing much bigger challenges.

“Not only do people have to get to grips with a new scheme, but it’s targeted at those on low incomes. In many cases, it’s enough of a struggle to make it from one month to the next, let alone put money aside for the future. So while it’s a brilliant scheme in theory, government incentives aren’t going to make much difference if people can’t actually afford to take advantage of them – and there’s every sign that enormous numbers of them can’t.”

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