The “sidecar savings” scheme will let workers save directly from their salaries to build a pot of up to £1,000.
The aim of the scheme is to encourage workers to develop a short-term buffer against financial emergencies – meaning they will be less likely to fall back on high-cost credit options such as payday loans.
This trial will be rolled out over the coming months, with high street chain Timpson the first company to offer the scheme to its 5,600 employees.
It is being launched by the Government-founded workplace pensions scheme Nest, and is supported by the JPMorgan Chase Foundation and the Money Advice Service (MAS). It follows MAS research showing that 26% of UK workers have no savings, while only 44% have £500 or more in ready cash for emergencies.
See our Top Savings Accounts guide for more info on savings.