The Help to Save scheme was originally supposed to end in September but was extended to allow more households to take advantage of the 50 percent bonus.
Millions on low incomes can benefit from the Government saving scheme aimed to help people build up their savings.
Individuals can save between £1 and £50 each calendar month. They do not have to pay money in every month.
The account is backed by the Government so all savings in the scheme are secure.
Britons get bonuses at the end of the second and fourth years. They’re based on how much someone has managed to saved.
The maximum amount that people can be save in the account is £2,400 over four years.
The most someone can earn from their savings in four years is £1,200 in bonus money.
The bonus is paid into an individual’s bank account, not their Help to Save account.
Money can be paid in at random time, but the most someone can pay in each calendar month is £50.
If someone has saved £50 by June 12, they will not be able to pay in again until July 1.
During the Spring Budget, the Chancellor announced he was extending the scheme as well as having a consultation on how to support low-income savers in the long term.
Who is eligible?
Savers can open a Help to Save account if they’re receiving:
- Working Tax Credit
- Child Tax Credit – and they’re entitled to Working Tax Credit
- Universal Credit and they (with their partner if it’s a joint claim) had take-home pay of £722.45 or more in their last monthly assessment period.
If someone stops claiming benefits, they can keep using their Help to Save account.
Saving money through a Help to Save account could affect one’s eligibility for certain benefits and how much they get.
People can also still keep the account even if they’ve stopped claiming benefits.
To apply for the account, savers will need their Government Gateway user ID and password, as well as their UK bank details. More information about that can be found on the Government website.
Jack Leslie from the resolutionfoundation.org said: “Governments too often try to reinvent the wheel when coming up with ways to solve problems. It is better to build on things which we know already work well. And here our research provides a good candidate: the relatively unknown Help to Save scheme.”
“However he explained the scheme is being held back by low take-up with just 350,000 accounts opened since launch in 2018.
He thought the Government should therefore expand the scheme and look to increase take-up. Using that idea, all new benefits claimants could automatically be given a Help to Save account, with a small bonus to kickstart their incentive to save.