Universal Credit Claimants Eligible for £1,200 Bonus Through Help to Save Scheme
Households in the UK who are receiving benefits may qualify for a substantial financial boost of up to £1,200 from HM Revenue and Customs (HMRC). This opportunity is available through the government-backed Help to Save scheme, which provides a generous bonus to encourage savings among eligible individuals.
How the Help to Save Scheme Works
The Help to Save scheme is a specialised savings account designed to support those on Universal Credit. For every £1 saved by participants, the government contributes an additional 50p as a bonus. This incentive is calculated over a four-year period, with the potential to accumulate a maximum bonus of £1,200.
HMRC recently highlighted this initiative on social media, stating: "Do you claim Universal Credit? If so, you may be eligible for a savings boost. With Help to Save, for every £1 you save, the Government adds 50p. That’s up to £1,200 in bonus payments over four years. Check eligibility and apply today via the HMRC app."
Key Features and Eligibility Requirements
To open a Help to Save account, individuals must be receiving Universal Credit and have had a take-home pay of £1 or more in their last monthly assessment period. This applies to both single claimants and those in joint claims with a partner. Importantly, couples can each apply for their own separate accounts, but they must submit applications individually.
The scheme offers flexibility in savings contributions. Participants can deposit between £1 and £50 each calendar month, and they are not required to make payments every month. Multiple deposits are allowed within a month, but the total cannot exceed £50. For instance, if someone saves £50 by January 8th, they cannot add more funds until February 1st.
Payments can be made via debit card, standing order, or bank transfer. Withdrawals are permitted only to the account holder's bank account, ensuring secure access to funds.
Account Management and Closure
Help to Save accounts have a fixed duration of four years from the opening date. After this period, the account will close automatically, and participants cannot reopen it or open another one. However, they retain all savings and bonuses accrued.
Account holders have the option to close their account early at any time. However, doing so will result in forfeiting the next scheduled bonus and permanently disqualify them from opening another Help to Save account in the future.
As a government-backed initiative, all savings within the Help to Save scheme are fully secure, providing peace of mind for participants looking to build their financial resilience.
