16 March 2023 , 12:00
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Millions of Universal Credit claimants could get a £600 savings boost as the Government's Help to Save scheme is extended.
The move was announced in the Chancellors' Spring Budget yesterday.
The scheme was set to end in September this year but will now be open until April 2025.
Chancellor Jeremy Hunt said he will also be looking for longer term options to support low-income savers going forward.
This means more people have the chance to access the scheme and make extra money by through it.
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Launched in 2018, Help to Save is a savings scheme for people on low incomes which gives you a bonus payment of up to 50% of the savings paid into the account.
So for every £1 put in the account, the Government will boost it by 50p.
You can save between £1 and £50 each calendar month which you can pay into the account through either a standing order or bank transfer.
If you keep paying into the account; at the two year mark, the Government will pay a bonus of 50% of your highest balance throughout that time.
The Government paid another bonus at the four-year mark too.
If you put in £50 a month for the next two years, you will have saved £1,200 of your own money.
This means you will also be eligible for a tax-free bonus of £600.
You can apply for a Help to Save account if any of the following apply:
- You are receiving Working Tax Credit
- You are entitled to Working Tax Credit, and receiving Child Tax Credit
- You are claiming Universal Credit and (with your partner if it's a joint claim) earned a minimum of £658.64 from paid work in your last assessment period
You also need to be living in the UK to be eligible for the scheme.
If you get Universal Credit or Tax Credit payments as a couple, you and your partner can still apply for your own Help to Save accounts.
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You can apply for the Help to Save scheme online through GOV.UK.
Since it started, Government figures say under 400,000 people have opened a Help to Save account.
The Money Saving Expert Martin Lewis shared that he was "pleased" to see the extension to the scheme in the Budget yesterday.
In a Tweet, he said: " "Help to Save scheme (50% boost to many on Universal Credit who use the scheme) to be extended.
"It was due to close to in September, I'm pleased to see it has now been extended so new applicants can apply until April 2025."