People who claim Universal Credit could get a £1,200 tax free bonus paid directly into their savings account. Universal Credit claimants could receive up to £1,200 in free cash thanks to the Help to Save scheme which is available to Universal Credit claimants who earn at least £1 in their monthly assessment period.
The Labour Party government-backed scheme offers savers a generous 50p bonus for every £1 saved over a four-year period, with the potential to earn a maximum bonus of £1,200. Martin Lewis previously said: “Imagine you put in £50 a month for a year, you’ve now got £600 in, unfortunately you’ve had an emergency and you have to take it out. You can’t put any more in for the rest of the two years… you still get £300 bonus even though you’ve got nothing in the account.”
Sarah Coles, personal finance analyst at Hargreaves Lansdown, praised the initiative: “This is a brilliant scheme, with government bonuses that are so generous that the returns cant be beaten by any other savings product.”
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She added: “Its also super flexible, so it can fit in around your needs, which makes it ideal for people on low incomes.” Myron Jobson, Senior Personal Finance Analyst at Interactive investors, emphasised the scheme’s value: “On paper, Help to Save is a great initiative to help instill a culture of savings among the nation’s most cash-strapped individuals.”
He said: “A 50 per cent savings bonus is too good a carrot to pass up” for those who can afford it”, and went on to add: “The bonuses are paid after the first two years and again at the end of the four-year period.” You can open a Help to Save account if you’re receiving:
- Working Tax Credit
- Child Tax Credit – and you’re entitled to Working Tax Credit
- Universal Credit and you (with your partner if it’s a joint claim) had take-home pay of £793.17 or more in your last monthly assessment period