More than 5.5 million people across the UK are currently claiming Universal Credit and around five million more households are receiving additional financial support through Work Tax Credits.
Restrictions have now been lifted in Scotland, which should help the economy get back on its feet again. However, 1.9 million people are still on leave or facing job uncertainty and may have to apply for financial assistance through the Department of Work and Pensions (DWP) or HM Revenue and Customs. (HMRC) to help them meet the daily cost of living.
However, even if you count on the state to help you weather the pandemic this summer, there is a way to increase your savings by 50%, which could come in handy when the economic tide turns – and it doesn’t. is not available to everyone.
And this particular savings program was mentioned a few times by money saving expert Martin Lewis during the last round of his Money Show Live on ITV.
The Help to Save account is a program to which thousands of people with low income or receiving certain benefits could be eligible.
This is a state-run program that allows people who qualify for work tax credits or receive universal credit to get a bonus of 50 pence for every £ 1 saved over a period up to four years.
It is also possible to withdraw money from the account, but there is a catch: the bonus payout is based on the highest amount you have invested.
Even if you are not able to put money aside to save at the moment, open an account anyway, while you are entitled to it, because you do not have to put any money in it.
How the savings assistance program works
The program allows certain people who are eligible for the Work Tax Credit or on the Universal Credit to get a bonus of 50 pence for every £ 1 saved over four years.
Help to Save is backed by the UK government, so any savings made under the program are secured.
How Payments Work
You can save between £ 1 and £ 50 per calendar month – you don’t have to pay every month.
Payments can be made by debit card, standing order or wire transfer.
You can pay as many times as you want, but the maximum you can pay for each calendar month is £ 50.
You can only withdraw money from your Help to Save account to your bank account.
How Bonuses Work
You get bonuses at the end of the second and fourth years – they’re based on how much you’ve saved.
What happens after four years?
Your Help to Save account will close four years after opening. You will not be able to reopen it or open another Help to Save account.
You can close your account at any time. If you close your account early, you will miss your next bonus and you will not be able to open another one.
You can open a Help to Save account if you are:
Reception Labor Tax Credit
Ability to Labor Tax Credit and receive Child tax credit
Affirming Universal Credit and your household earned £ 604.56 or more from paid work during your last monthly assessment period
Receive payments as a couple. You and your partner can request your own Help to Save accounts – you must apply separately
You must also live in the UK.
Will this affect my benefit payments?
You can continue to receive tax credits or a universal credit while saving with Help to Save.
What happens if I stop claiming benefits?
You can continue to use your Help to Save account.
For more information and to set up your Help to Save account, visit the GOV.UK website here.
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