Millions on Universal Credit missing out on free cash worth £1,200 from Help to Save – how to get it
MILLIONS of households on Universal Credit are missing out on a free cash bonus worth over a thousand pounds.
The cash comes through the Help to Save scheme which is designed to encourage those on certain benefits to save money.
You can sign up if you are on Universal Credit, Working Tax Credit or Child Tax Credit.
Under the scheme, the government gives you 50p for every £1 you save into your account over four years.
You can save between £1 and £50 each calendar month and pay the money in via standing order or bank transfer.
That means if you put the maximum £50 in each month from July 2023 for two years you would get back £600 from the government in total.
And if you keep saving across the full four years, you’ll get a £1,200 bonus in total.
Over 380,000 people have opened a Help to Save account since it launched in September 2018, according to the government’s recent figures.
However, there are 43,500 open accounts that have still received no deposit and millions more are eligible to open one.
Around 3.5million people were estimated to be eligible for an account when the Help to Save scheme first launched.
But Universal Credit claims have since increased, meaning even more people could now get the account.
Help to Save is useful for people who can afford to put some money away each month or week, so the scheme isn’t for everyone.
But you can still open one and save as little as a pound here and there to get started.
You don’t have to pay in every month and there’s no set amount.
The total amount in Help to Save accounts was £115 million after March 2022.
Who is eligible for Help to Save?
You can open a Help to Save account if you are:
- Receiving working tax credit
- Are entitled to working tax credit and receiving child tax credit
- Claiming Universal Credit and you (with your partner if it’s a joint claim) earned £658.64 or more in your last monthly assessment period
It’s worth noting that your earnings are based on take-home pay.
This is how much you have earned after deductions such as tax or National Insurance.
If you are in a couple, you and your partner can apply for separate Help to Save accounts, but you’ll need to apply individually.
You also need to be living in the UK to be eligible for the scheme.
How can I apply?
You can apply for an account via gov.uk but you’ll need a government gateway ID and password.
You can create a user ID when you apply if you don’t already have one.
If you don’t have access to a computer or phone with internet connection, you can call 0300 322 7093 to set up an account.
You’ll need to provide bank details when you apply as the bonus is paid into your bank account rather than savings account.