Money saving expert Martin Lewis has detailed a powerful government-backed savings scheme that can pay a free £600 bonus to eligible individuals on low incomes.
What is the Help to Save scheme?
During a recent episode of ITV's The Martin Lewis Money Show Live, the financial journalist explained the mechanics of the Help to Save account. This scheme is designed for UK residents who receive Universal Credit, Working Tax Credit, or Child Tax Credit.
It allows account holders to save between £1 and £50 per month. The key benefit is a generous, tax-free bonus calculated at 50% of the highest balance achieved. These bonuses are paid at the two-year and four-year marks, with a potential total bonus of up to £1,200 over the full four years.
A viewer's success story
One viewer, Donna, called into the show to share her positive experience. She revealed she had just received her final £600 bonus, bringing her total savings and bonus to £2,400.
"Thank you Martin, I received my savings of £2,400 and my last bonus of £600 this month," Donna said. "I’ll be putting it into a savings account and carry on saving even more after. I’ve now even recommended the Help To Save scheme to friends and family to help them save too."
Key rules and recent changes
Martin Lewis emphasised several crucial points about the account. While money can be withdrawn at any time, this may affect the bonus amount, as it is based on the highest balance achieved. Importantly, if you open an account while on Universal Credit and working, you can keep the account open even if you later stop claiming the benefit.
He also welcomed a significant policy change announced by Chancellor Rachel Reeves in the Autumn Budget. The Help to Save scheme, which was previously temporary, has now been made permanent. Furthermore, its eligibility is set to expand in the coming years.
"In a couple of years' time, not just those who are working but those on Universal Credit who have parental or kinship or carer's responsibility will be able to get it too," Lewis explained.
The consumer champion was unequivocal in his recommendation for those who qualify. "Look, Help To Save is incredibly important. It’s unbeatable savings... No other form of savings comes close to beating it," he stated.
