Martin Lewis is encouraging people on a low income or currently claiming Universal Credit or tax Credits to take advantage of a unique savings scheme which could provide an extra cash boost of up to a maximum of £300 each year. In a special post-Budget edition of The Martin Lewis Money Show Live, 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 founder of MoneySavingExpert.com explained how the Help to Save Scheme had been due to end this September, but in the underlying details of Chancellor Jeremy Hunt’s Spring Statement, it revealed that the scheme would remain open to new applicants for a further 18-months.
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.
Martin explained how 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: "Help to Save has been extended for new applicants until April 2025, it was due to end for new applicants this September.
“Now, listen to me if you’re eligible for this because it’s really important. If you are on Universal Credit and you work or you are on Working Tax Credits you are probably eligible for Help to Save.”
He stressed that it is “the best possible savings account there is - nothing like it”.
He continued: “You’re allowed to put in up to £50 in month and if you put it in over two years, you get a 50 per cent bonus on the most you have in, over two years.”
Martin simplified the rules of the bonus structure by saying that if you put in the maximum amount of £50 each month for 12 months, that gives a total of £600. If you need money for an emergency, and withdraw the £600 leaving you with no money in the account, and you put no more money in over the two year period, your bonus will be £300 because it is 50 per cent of the highest amount you had in the account.
He called it “very powerful, very worth doing if you’re in that position.”
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 until the four years ends.
For more information and to set up your Help to Save account, visit the GOV.UK website here.
To keep up to date with the latest benefits news, join our Money Saving Scotland Facebook page here, follow us on Twitter @Record_Money, o r subscribe to our newsletter which goes out Monday to Friday - sign up here.
