Almost six million individuals in the UK claim Universal Credit, and another five million households currently receive additional financial assistance via Working Tax Credits.
Due to changes to the taper rate and work allowance rules brought in last November, the Department for Work and Pensions (DWP) has revealed that approximately 500,000 homes in the UK may now qualify for Universal Credit when they did not before.
Certain benefits claimants are also eligible for a scheme that is intended to assist financially by increasing savings by 50%, as reported by the Daily Record.
READ MORE — DWP reveals new weekly benefit payment rates starting in April
Although the scheme is not available to everyone, those who are eligible will be able to set aside extra money.
Martin Lewis and those working at MoneySavingExpert.com have frequently reported on the scheme, and as a result the DWP and HMRC have accredited a significant portion of its success to them in newly released research.
Part of the research consisted of an online questionnaire filled out by 2,743 Help to Save customers between December 2020 and January 2021.
A total of 33 follow-on qualitative depth interviews were also carried out during March 2021.
The report stated: "The research found that Help to Save customers are predominantly working women with children at home - in line with the general profile of the Tax Credit population.
"A third are single parents. MoneySavingExpert was found to be a key source of awareness of the scheme."
It added: "Customer views on Help to Save are overwhelmingly positive, with a significant majority recommending the scheme to others."
You can read the full report on Help to Save on the GOV.UK website here.
What is Help to Save?
Help to Save is a type of savings account available to certain people on a low income or who are claiming specific benefits.
The scheme, which is backed by the UK Government, means that people who are entitled to Working Tax Credits or who receive Universal Credit are eligible for 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.
Those eligible for the savings account who do not currently have any money to put aside are still advised to open an account whilst they are eligible — as you don't have to put any money in.
How payments work
Anywhere from £1 to £50 can be saved each month, though those with the account are not required to pay into it 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.
The most you can pay into your account each calendar month is £50, which is £2,400 over 4 years.
The most you can earn from your savings in 4 years is £1,200 in bonus money.
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 £604.56 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.
