Published On: Mon, Aug 31st, 2020

Help to Save: How Britons can receive a £1,200 cash boost | Personal Finance | Finance

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Help to Save was developed by the government to assist those who are claiming certain benefits. It allows particular people who are entitled to Working Tax Credit or receiving Universal Credit to get a bonus from the government. For every £1 a person saves over four years, they can receive a bonus of 50p.

Help to Save promises to add this bonus up to a maximum of £1,200 for those claiming Universal Credit or Working Tax Credit.

This could prove a particularly useful boost, particularly during the COVID-19 crisis. 

In terms of payments, Britons can save between £1 and £50 each calendar month, but people do not have to pay in money that regularly.

Money can be paid into a Help to Save through a variety of means including debit card, bank transfer or standing order.

READ MORE: State Pension: Important age change comes into effect this week

This is a 57 percent increase from the previous half year statistics. 

The average deposit per person per month has additionally risen to £48, which is just slightly less than the maximum monthly limit. 

Sarah Coles, personal finance analyst at Hargreaves Lansdown commented on the Help to Save scheme, stating: “With their lives turned upside down and their finances stretched to breaking point, you’d have thought the last thing on many people’s mind will have been the fact they might now qualify for a savings scheme.

“However, the uncertainty of life and the value of a safety net were also becoming far clearer, and people realised the value in having something to fall back on.

“The fact you can start from £1 a month, and you can get your hands on the cash at any time, means there’s no harm in trying to save.”

The Help to Save account closes four years after a person opens it in the first place.

People will not be able to reopen it or open another Help to Save account.

However, they will be able to keep the money from the account.

The account can be closed at any time a person so chooses.

But if the account is closed early, individuals will miss their next bonus and they will not be able to open another one. 

To be eligible, someone must fulfil one of the following guidelines:

  • receiving Working Tax Credit
  • entitled to Working Tax Credit and receiving Child Tax Credit
  • claiming Universal Credit and have a household which earned £604.56 or more from paid work in your last monthly assessment period

People can apply for a Help to Save account through the portal which is accessible on the government’s website. 

They will need to provide their UK bank details when they apply. 

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