Households on Universal Credit are only just realising they can claim up to £1,200 free cash
HOUSEHOLDS on Universal Credit are only just realising you can get over £1,000 in free cash through a scheme.
Help to Save is a government initiative designed to encourage those on benefits to save money.
You can sign up if you are on Universal Credit, Working Tax Credit or Child Tax Credit.
Under the scheme, the government gives you 50p for every £1 you save into your account over four years.
You can save between £1 and £50 each calendar month and pay the money in via standing order or bank transfer.
That means if you put the maximum £50 in each month for four years you would get back £1,200 from the government in total.
But there are still plenty who aren’t getting the free money when they could.
Yesterday, one person posted on the Extreme Couponing and Bargains UK Facebook Group revealing they didn’t realise they could get the free cash through the scheme.
They said: “Has everyone seen this?
“You save £50 a month and get £25 a month back in interest!”
Dozens of people have since commented on the original post, with some saying they’ve saved through the scheme.
One said: “I do this. Have been doing it for nearly a year.
“Such an amazing scheme and has helped me to save.”
Another said: “Just finished mine…paid for a leaky roof!”
“Shame you can’t do it twice.”
A third added: “I’m in my last year of this, wish I could do it again. Such an easy way to save.”
Just under 400,000 people have opened a Help to Save account since it launched in September 2018, according to the government’s latest figures.
But that means millions of households aren’t getting the free cash when they could be.
Help to Save might not be for you if you are struggling to afford everyday essentials.
But you don’t have to pay in every month and can top up your account from just £1.
Sarah Coles, personal finance analyst at Hargreaves Lansdown, previously told The Sun: “If you qualify for the scheme, it’s worth taking the time to consider if there’s any way you can afford to put away any money each month.”
Who is eligible for Help to Save?
You can open a Help to Save account if you are:
- receiving working tax credit
- are entitled to working tax credit and receiving child tax credit
- claiming Universal Credit and you (with your partner if it’s a joint claim) earned £658.64 or more in your last monthly assessment period
It’s worth noting that your earnings are based on take-home pay.
This is how much you have earned after deductions such as tax or National Insurance.
If you are in a couple, you and your partner can apply for separate Help to Save accounts, but you’ll need to apply individually.
You also need to be living in the UK to be eligible for the scheme.
How much can you save through the scheme?
You can save between £1 and £50 every calendar month and your account will last four years from the date you opened it.
After two years, savers get a 50% tax-free bonus on the highest balance they have achieved.
If you carry on saving, you get a further 50% tax-free bonus after the next two years.
This means the most you can earn over the four years is £1,200.
You can make withdrawals from the account before the four years is up, but this will impact the maximum bonus you can get later on down the line.
Another important thing to note, is that if your Help to Save cash pushes you over the £6,000 personal savings threshold, it could impact your eligibility for some benefits.
You should check out the government’s website for the full details.
How can I apply?
You can apply for an account via gov.uk but you’ll need a government gateway ID and password.
You can create a user ID when you apply if you don’t already have one.
If you don’t have access to a computer or phone with internet connection, you can call 0300 322 7093 to set up an account.
You’ll need to provide bank details when you apply as the bonus is paid into your bank account rather than savings account.
What other help can I get if I’m on Universal Credit?
The government has announced millions of households will get a £900 cost of living payment over the next two years, including those on Universal Credit.
The payment is going to be split into three instalments of £301, £300 and £299.
You don’t have to apply for the payments as they will be made automatically into accounts.
There’s a number of freebies you can get if you are on Universal Credit too.
This includes free or cheap broadband, free school meals, council tax discounts and cold weather payments.
In other news, millions on Universal Credit could be missing out on hundreds of pounds due to a “mystery” glitch.
Plus, thousands on the benefit were impacted by a major change in January.