Martin Lewis, founder of MoneySavingExpert.com, has revealed how Universal Credit claimants in the UK could receive a £1,200 cash bonus.
On his ITV programme, Lewis reminded viewers of the Help to Save savings account. Lewis also revealed that, after four years of saving into the account, low-income earners could bank themselves an extra £1,200 from the government.
Here’s everything you need to know about Help to Save, as well as whether you’re eligible for this incredible bonus!
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What is the Help To Save savings account?
The government set up Help to Save in 2018. The savings account is available for UK residents on low incomes who are entitled to Working Tax Credit as well as people who receive Universal Credit.
The savings account can be used for four years. For every £1 saved into the account, the government will give an extra 50p on top! Account holders can make monthly payments at a minimum of £1 and a maximum of £50. As a result, those who pay in the maximum £50 each month for the four years could receive a £1,200 bonus from the government.
Money from the Help to Save savings account can only be withdrawn to your bank account. However, account holders are able to withdraw money at any time. It also is worth noting that bonuses are paid into Help to Save accounts at the end of the second and fourth years of saving. Consequently, withdrawals could affect these bonuses.
Any money that is earned through your account is tax free!
After four years, your Help to Save savings account will close. When this happens, you will not be able to re-open the account or create a new Help to Save account. It is possible to close your account before the four year period. However, by doing this you could miss out on a bonus.
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Are you eligible for Help to Save?
The Help to Save savings account is available to UK residents who receive any of the following:
- Working Tax Credit
- Universal Credit (as long as you earned more than £617.73 or more from paid work in your most recent monthly assessment period)
The Help to Save account is also available to those who are entitled to Working Tax Credit and are receiving Child Tax Credit.
To fit the above criteria, you need to be living in the UK. If you live overseas, you may be eligible for a Help to Save account if you are a Crown Servant. This includes the spouses or civil partners of Crown Servants. You might also be eligible if you are a member of the British Armed Forces (also including spouses and civil partners.)
How do you open a Help to Save account?
Help to Save accounts are designed for low-income earners who are also able to put money away each month. If you are eligible for an account, then you can start saving today!
To apply for a Help to Save account, you will need to sign in to your Government Gateway account. For this, you will need access to your Government Gateway user ID and your password.
If you do not have an existing Gateway user ID, you can create one when you apply. You will also be asked to provide your bank details
Help to Save accounts will be held with National Savings and Investments (NS&I). Furthermore, you will be able to manage your account on the gov.uk website when it is set up.
More information on how to apply for a Help to Save account is available via the Help to Save page on the gov.uk website.
