Money Saving Expert founder Martin Lewis has issued an important reminder to those in receipt of Universal Credit (UC) or other benefits from the Department for Work and Pensions (DWP).
The financial guru has told of an 'unbeatable' bonus scheme created by the Government for those claiming UC or Tax Credits.
The Liverpool Echo reports that the plan titled Help To Save rewards those participating with a free £1,200 bonus surplus at the end of a four year period, if they play along and deposit £50 each month.
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Taking on Twitter, Martin replied to one saver who thanked him for his helpful money-saving tip.
Bryan Nisbet said: "I claimed UC for my wife and me and took your advice to open account in June 2020, £50 each pm gives us a free £1200 bonus next week plus our £2400 savings, great advice."
Martin retweeted the post, as he added: "Are you, or someone you know on Universal Credits or other benefits? Do look at Help To Save. You can put up to £50/mth in, then after 2yrs get a 50% bonus on the most you had in there (even if you've taken it all out). Unbeatable!"
The Daily Record reported that the latest statistics from the Department for Work and Pensions (DWP) show that in January 2022 there were 5.6m people across the UK receiving financial support through Universal Credit, a benefit intended to help those out of work or on a low income with daily living costs.
However, many new and existing benefit claimants may not be aware that they could also be eligible for a £1,200 bonus through the Help to Save scheme, which continues even if you stop claiming benefits or Tax Credits. The savings scheme offers people the opportunity to earn a maximum bonus of £1,200 over a four-year period, but how much you get back depends entirely on how much you put in each year as the 50% bonus is based on your highest total savings amount.
What is Help to Save?
The Help to Save account is a scheme which millions of people on a low income, or claiming certain benefits, could be eligible to join. It is a state-operated scheme that allows people entitled to Working Tax Credits or receiving Universal Credit to get a bonus of 50p for every £1 they save over a period of up to four years.
It is also possible to take the money out from the account, but there’s a catch - the bonus pay out is based on the highest amount of money you put in. Even if you’re not able to set aside money for savings at the moment, open an account anyway, while you are eligible to do so, because you don't have to put any money in.
How the Help to Save scheme works
The scheme allows certain people entitled to Working Tax Credit or receiving Universal Credit to get a bonus of 50p for every £1 they save over four years. Help to Save is backed by the UK Government so all savings in the scheme are secure.
How payments work
You can save between £1 and £50 each calendar month - you don’t have to pay in every month. Payments can be made by debit card, standing order or bank transfer.
You can pay in as many times as you like, but the most you can pay in 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 - these are based on how much you have saved.
What happens after four years?
Your Help to Save account will close four years after you open it. 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.
Eligibility
You can open a Help to Save account if you are:
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Receiving Working Tax Credit
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Entitled to Working Tax Credit and receiving Child Tax Credit
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Claiming Universal Credit and your household earned £604.56 or more from paid work in your last monthly assessment period
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Getting payments as a couple. You and your partner can apply for your own Help to Save accounts - you need to apply separately
You also need to be living in the UK.
Will it affect my benefit payments?
You can continue to receive Tax Credits or Universal Credit while saving with Help to Save.
What happens if I stop claiming benefits?
You can keep using your Help to Save account. For more information and to set up your Help to Save account, visit the GOV.UK website here.
Will you be making the most of the interesting new scheme?
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