Martin Lewis is encouraging people on a low income or currently claiming Universal Credit to take advantage of a unique savings scheme which could provide an extra cash boost of up to £300 each year. In a special savings edition of The Martin Lewis Money Show Live this week, the financial expert encouraged viewers to consider opening a UK Government Help to Save account and take advantage of the 50 per cent bonus structure it offers.
The account can be opened for a maximum of four years, offering a return of up to £1,200, or £300 each year - however, the bonus is only paid at the end of the second and fourth year. It doesn’t matter how much you withdraw, the bonus is paid depending on the highest amount you had in the account over each two-year period.
Martin told viewers: “It is for people who are on Universal Credit or have low incomes - not everyone will qualify, but it is worth checking.”
The founder of MoneySavingExpert.com explained how it allows people on a low income to save, but also use the money in the account if they need to.
He said: “You can do it for two years, well after that, you’ve done the first two years you can do it for another two years.
“If you’re in the position to get Help to Save, there is nothing anywhere even close to as good as those terms and that 50 per cent bonus.”
Below is everything you need to know about the Help to Save scheme, you can also find full details on GOV.UK here.
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 payout 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:
Receiving Working Tax Credit
Entitled to Working Tax Credit and receiving Child Tax Credit
Claiming Universal Credit and your household earned £658.64 or more from paid work in your last monthly assessment period
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.
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