Help to Save launches today in the United Kingdom. The British Government’s savings scheme aims to help low-income workers on universal credit and tax credits. The scheme aims to encourage workers to save thousands of pounds over the next four years.
With Help to Save, individuals and families can deposit up to £50 each month over a four-year period. They could also receive up to £1,200 in tax-free bonuses.
Regarding the new savings scheme that begins today, the UK Government wrote:
“Savings play an important role in helping families and individuals prepare and plan for the future.”
“Help to Save is a new government saving scheme to support working people on low incomes to build their savings.”
“Over 4 years, regular savers can deposit up to £50 a month and could receive up to £1,200 in tax-free bonuses.”
Who is Help to Save for?
The savings scheme, which HM Revenue and Customs administers, is open to UK residents who:
– Receive or are entitled to receive Working Tax Credit or Child Tax Credit payments.
– Are currently claiming Universal Credit and have a household or personal income of at least £542.88 in their last monthly assessment period. The Government does not consider Universal Credit payments as part of the household income.
Household income, in this context, refers to the total income of the earners who live together in the same home.
Living overseas
What if you live abroad and meet either of these eligibility conditions? You can apply for an account if you are:
– A member of the British armed forces, or their civil partner or spouse.
– A Crown servant, or their civil partner or spouse.
How Help to Save works
As soon as you are confirmed as eligible, you can start saving immediately. You can manage all transactions online through a service that GOV.UK manages. In other words, you can do all transactions, including paying in savings and checking your balance, online.
You can save up to £50 monthly. After 24 months, you get a 50% bonus. The Government bases this bonus on the highest balance that you achieved.
You can subsequently continue saving for another two years. You also get a 50% bonus at the end of the second two years.
If you want more information or would like to apply, go to this website or telephone 0300 322 7093. These lines are open from 10 am to 6 pm from Monday to Friday.
Customers who already have a Help to Save account can sign in here.
It is also possible to access your account through this HMRC app or your personal tax account.
