The government has extended a scheme that could boost savings by an extra £1,200 for low-income earners.
The Help to Save scheme, which offers a 50 per cent bonus payment worth up to £1,200 over a four-year period, will be extended to April 2025, according to HM Revenue and Customs (HMRC). The government department said more than 359,200 customers have already opened savings accounts since the scheme initially launched in September 2018.
Meanwhile, an additional 3 million people are believed to still be eligible to benefit from the saving scheme due to the extension. Savers can benefit from the scheme by depositing between £1 and £50 a month into their account which will result in a bonus from the government, even if the money is later withdrawn.
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A 50 pence bonus is paid for every £1 saved which is paid in the second and fourth years. This means someone placing the maximum of £2,400 into their savings account will receive an extra £1,200 from the government which is paid directly into their bank account.
Myrtle Lloyd, HMRC’s Director General for Customer Services, said: "Help to Save can encourage positive saving habits – no matter what you can afford to save – and the 50% government bonus payment can help savers when they need it most. It is quick and easy to apply online or via the HMRC app, just search ‘help to save’ on GOV.UK to find out more.
Who is eligible for the Help to Save scheme?
Individuals can open a Help to Save account if, when they apply, they are receiving:
- Working Tax Credit
- Child Tax Credit and are entitled to Working Tax Credit
- Universal Credit and they (with their partner, if it is a joint claim) had take-home pay of £722.45 or more in their last monthly assessment period.
Andrew Griffith, Economic Secretary to the Treasury, said: "Millions of people could benefit from a boost to their savings through Help to Save and thanks to our Spring Budget reforms the scheme has been extended until 2025. Whatever amount you can save will trigger a top up from the Government, so take advantage and apply today."
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