In a move to provide financial assistance to low-income individuals, HM Revenue and Customs (HMRC) is offering a £1,200 bonus to thousands of individuals claiming Universal Credit or Tax Credit. This initiative comes under the Government’s Help to Save scheme, which aims to support those on limited incomes.
The Help to Save scheme offers a generous 50% bonus payment on savings, with a maximum bonus amount of £1,200. This means that for every £1 deposited into a Help to Save account, individuals will receive an additional 50p back, effectively offering a 50% return on their savings. The scheme encourages individuals to save regularly and responsibly.
Help to Save accounts have a duration of four years, with bonus payments made during the second and fourth years from the account’s opening. To maximize the bonus, individuals can save up to £50 per month, which totals £2,400 over four years, resulting in a maximum £1,200 bonus from the Government.
One of the flexible features of the Help to Save scheme is that individuals are not obligated to save the full £50 each month. They can contribute less, but this will naturally result in a proportionally lower bonus.
To be eligible for a Help to Save account, individuals must meet certain criteria. They can open an account if they receive Universal Credit and have take-home pay of £722.45 or more in their last monthly assessment, or if they are in receipt of a Working Tax Credit or Child Tax Credit and are entitled to Working Tax Credit.
Opening a Help to Save account is a straightforward process. Eligible individuals can access the application form on the Government website or call 0300 322 7093. Couples have the option to open joint accounts or separate accounts if they receive payments as a pair. However, it’s essential to be aware that having savings in other accounts alongside a Help to Save account could potentially impact the amount of benefits received if the savings exceed a certain threshold.
It’s important to note that while savings or bonuses accumulated through Help to Save may impact certain benefits, they do not affect Working Tax Credit, providing individuals with a valuable opportunity to save and secure a financial boost for their future.
For those seeking financial support and an opportunity to build savings, the Help to Save scheme offers a lifeline, helping to improve financial resilience and security.
