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Hundreds of thousands of low-income savers who put away money in a government saving scheme have received more than £220million in bonus payments since 2018. Some 575,200 customers have opened a government Help to Save account since the scheme was launched in September 2018, paying a total of £588.2million into their savings pots. Help to Save is a type of savings account which was launched by the Government in 2018.
It helps low-income people who receive certain benefits to build a savings pot by paying a bonus of 50p for every £1 they save over four years. Savers can put away between £1 and £50 each month. They don’t have to pay money into the account every month. It means those tucking away the maximum £50 a month can get a £25 Government top-up, with bonuses paid in the second and fourth years of the account being opened.
Savers who deposit the maximum amount of £2,400 over four years will receive a bonus totalling £1,200 into their bank accounts, with payments coming at the end of the second and final year. The scheme was due to end in September 2023 but was extended to April 2025 and has now been extended until April 2027. Of those who opened a Help to Save account, 94 per cent deposited the maximum amount into their nest egg each month.
Who can open a Help to Save account?
The Help to Save scheme is one way those on lower incomes can begin to build up a savings pot and financial resilience. You can open a Help to Save account if you’re receiving Universal Credit and you had take-home pay of £1 or more in your last monthly assessment period. To claim Universal Credit you must be under the state-pension age and have have £16,000 or less in money, savings and investments.
You may be eligible if you are out of work working either part time or are self-employed or if you are unable to work, for example because of a health condition If you receive payments as a couple, you and your partner can apply for your own Help to Save accounts. You need to apply separately. You also need to be living in the UK to open the account.
Money can be paid into Help to Save accounts with a debit card, standing order or bank transfer. You can funnel between £1 and £50 each month and you do not have to pay money in every month.
Money can be withdrawn at any time, although this may affect the 50 per cent bonus payments as the closer to the maximum amount you have in the account the more of a bonus you get. Your Help to Save account will close four years after you open it. You won’t be able to reopen it or open another Help to Save account. You’ll be able to keep the money from your account.
