An extra 550,000 people are now eligible for savings product
Martin Lewis has spoken about a scheme that can help people boost their savings. In the latest edition of his newsletter, the Money Saving Expert praised ‘Help to Save’.
Help to Save is a type of savings account. It allows certain people entitled to Working Tax Credit or receiving Universal Credit to get a bonus of 50p for every £1 they save over 4 years.
The scheme is backed by the government, meaning they are all secure. As of April 6, it’s open to all working Universal Credit claimants who earned £1 or more in their previous assessment period.
As well as highlighting the scheme in his newsletter, Martin has also taken to social media to share a video explaining the scheme and how it can help people save further.
He said: “There is an unbeatable savings product that gives you a jaw-dropping 50% boost on what you save in it. It’s called Help to Save.”
There has been a change in the way the government backed scheme works, an extra 550,000 people are now eligible to open a Help to Save account. This brings the number of qualifying Brits to 2.7 million.
People first started using the accounts when the initiative launched in 2017. You have until April 2027 to apply and take advantage of the benefits. Martin says: “the big change is you used to have earned at least £793, now it’s just £1. So many more people are eligible.”
The money expert advises: “As soon as you are eligible you should open one, even if you stop being on Universal Credit you can still keep the product once it is open.”
He added: “You can save up to £50 a month into Help to Save, which you open via Gov.uk, it’s a state sponsored savings account. And then you keep saving in that for up to two years, at the end of two years, you get a 50% bonus on the most amount that you had put in.”
Offering a scenario, Martin told listeners to imagine they had saved £50 each month until they reached £800. After you withdraw it, you will be paid on the “most” you had in the account, you will get 50% of the £800 which is £400, meaning you would receive a bonus of £400.
The maximum two-year bonus is £600, but you can then do it for two more years, with the second bonus ‘based on the difference between the highest balance in years three and four and the highest balance during the first two years’ up to an additional £600.
However, Martin says Help to Save ‘may not be worth doing’ if you have expensive debt like payday loans or poor-credit credit cards.
You should also be aware that the money you put into this account counts towards your overall savings balance. If you have £6,000 or more put away, your Universal Credit entitlement and any Council Tax reduction can be reduced.
Your Help to Save account will close four years after you open it. You will not be able to reopen it or open another Help to Save account. You’ll be able to keep the money from your account.
How to apply
You’ll need to sign in to set up a Help to Save account. If you do not already have sign in details, you’ll be able to create them when you sign in for the first time.
You’ll need your National Insurance number or postcode and 2 of the following:
- a valid UK passport
- a UK photocard driving licence issued by the DVLA (or DVA in Northern Ireland)
- details of a tax credit claim, if you made one
- details from a Self Assessment tax return in the last 2 years, if you made one
- information held on your credit record, if you have one (such as loans, credit cards or mortgages)
You’ll be asked to provide your UK bank details when you apply.
