Millions of struggling Britons could be eligible for a £1,200 boost via the Help to Save scheme. The savings scheme was set up by the Government to help and encourage people on low income or benefits to save.
The incentive comes in the form of a 50 percent government bonus for any money that is saved over a four year period. Thousands of people have opened savings accounts since its launch in September 2018.
And last year the HMRC confirmed that the scheme would be extended to April 2025 so that more people can benefit from the extra cash.
Recent HMRC figures show almost 450,000 customers opened a Help to Save account between September 2018 and March 2023, receiving £146million in bonus payments.
In theory, an additional 3 million individuals, who are on low-incomes or receiving benefits such as Working Tax Credit, Child Tax Credit and Universal Credit, are eligible to sign up.
Once the account is open, Britons can deposit between £1 and £50 into the account each month – money does not need to be paid in every month.
They will then earn a 50 pence bonus for every £1 saved. These payments are paid in the second and fourth years. It means that someone saving the maximum amount possible of £2,400 would get a total of £1,200 in bonus payments. Money can be paid in any time, but the most someone can pay in each calendar month is £50.
In promoting the scheme, the HMRC said: “Setting up a Help to Save account online is quick and easy to do, and takes less than 5 minutes to sign up.”
Who is eligible?
Savers can open a Help to Save account if they’re receiving:
Working Tax Credit
Child Tax Credit – and they’re entitled to Working Tax Credit
Universal Credit and they (with their partner if it’s a joint claim) had take-home pay of £722.45 or more in their last monthly assessment period. If someone stops claiming benefits, they can keep using their Help to Save account.
Importantly, saving money through a Help to Save account could affect an individual’s eligibility for certain benefits and how much they get. Once an individual’s savings rise above £6,000 this could impact the amount of Universal Credit or Housing Benefit they are entitled to.
To apply for the account, savers will need their Government Gateway user ID and password, as well as their UK bank details.
More information about that can be found on the Government website here.
