The government has announced its plans to provide a cash boost to Universal Credit claimants by extending a vital scheme.
As part of the Spring Budget, the government will extend the Help to Save scheme for 18 months, making it available for new claimants until April 2025. The scheme will be extended on its original terms, which means workers on low income can receive a 50 per cent bonus on everything they save - equating to 50p for every £1 saved for a maximum bonus of £1,200 on savings up to £2,400 over four years.
The scheme is available to benefit claimants receiving Universal Credit or tax credits with a minimum earned income equivalent to 16 hours a week at the National Living Wage during their last monthly assessment period.
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Money-saving expert Martin Lewis praised the extension to the scheme during his breakdown of the Spring Budget. He said: "Help to Save, which is a brilliant scheme for people on universal credit, can get a 50 per cent bonus on top of everything they save on the maximum they've ever had in., meaning they can withdraw money and still get the bonus, was due to end for new applicants in September.
"I'm delighted to say that has been extended by 18 months, so it will continue until April 2025."
The government highlighted that a consultation will be launched "in the interim to seek views on longer-term options to support low-income savers".
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