Help to Save scheme: Millions of Britons on low incomes can get a cash boost worth £1,200 | Personal Finance | Finance
Britons are encouraged to save with the Help to Save scheme which is aimed to help those on low incomes specifically. The Help to Save scheme allows people on a low income, or who claim certain benefits, to open a special account to help them add to their savings.
The scheme is available to 3.5 million British people who are claiming Universal Credit, Working Tax Credits and Child Tax Credits.
It is a state-operated initiative that gives people a bonus of 50p for each £1 they save over a period of up to four years.
People with the account are allowed to take money out of it, but the catch is that the bonus payout is determined by the highest amount of money that is put in.
Even people who are unable to save money at the moment should open an account whilst they are eligible, because putting money into it is not mandatory.
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Although the scheme is not available to everybody, it could help many benefits claimants put some money away for a rainy day.
According to research by the DWP and HMRC, part of the scheme’s success can be attributed to Martin Lewis — who has suggested it many times.
The research consisted of an online questionnaire that was filled in by over 2,740 Help to Save customers between December 2020 and January 2021 — as well as an additional 33 follow-up interviews conducted last March.
The report stated: “The research found that Help to Save customers are predominantly working women with children at home – in line with the general profile of the Tax Credit population.
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The total amount saved over the four years would be £2,400, which the Government adds £1,200 to.
It’s estimated around 500,000 households may now be eligible to claim Universal Credit, when they weren’t previously, following a number of rule changes.
However, many people claiming benefits are not aware of the Help to Save scheme which has been specifically designed to help them by boosting their savings by 50 percent.
UK residents are entitled to open a Help to Save account if they are:
• Receiving Working Tax Credit or Child Tax Credit
• Entitled to Universal Credit and have earned income of at least 16 hours a week at the National Living Wage (from April 1, 2021, this is equivalent to £617.76 a month) in the previous assessment period
