Millions of people on Universal Credit missing out on £1,200 free money through Help to Save scheme
For every £1 you save, the Government will top up your savings by 50p on sums of up to £2,400
MILLIONS of hard-up Brits on Universal Credit are missing out on up to £1,200 free cash by not taking advantage of a Government saving account.
The Help to Save scheme was launched in September 2018 to help those on a lower income build a small nest-egg by boosting savings by 50 per cent.
The accounts are available to working people on tax credits and Universal Credit but millions are still missing out.
For every £1 you save in the account, the Government will top it up by 50p.
If you put in the maximum of £2,400, your cash will be boosted by £1,200 bringing your total savings up to £3,600.
Around 3.5million working Brits claim benefits to help stretch their income, according to the Department of Work and Pensions, but so far only 80,000 eligible people have opened an account.
Who is eligible for Help to Save?
ANYONE who is on a low income can open a Help to Save account, where the Government will top up your savings by 50 per cent on sums up to £2,400.
You can open an account if you're:
- entitled to Working Tax Credit and receiving Working Tax Credit or Child Tax Credit payments
- claiming Universal Credit and your household income in your last monthly assessment period was £542.88 or more.
Your Universal Credit payments don't count as part of your household income.
If you claim payments as a couple, you will both need to open an account separately.
Opening an account will only affect your Universal Credit or how much you receive for Housing Benefit claim if you or your partner have £6,000 or more in personal savings. This doesn't include your Help to Save bonuses.
Otherwise, your benefits won't be affected.
Of course, for some families the thought of having any spare cash at the end of the month to put into a saving account isn't feasible but you can put in as little as £1 before getting the bonus.
Unlike some savings accounts, there is no need to pay in every month and you can pay in as much as you like each month up to £50.
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You can make a withdrawal without being penalised but you won't get paid until the end of every second year.
The bonus is paid on the highest amount you had in the account during the two years even if you've had to make a withdrawal.
That means if the most you'd had in your account was £500 but at the end of the two years you only had £200, your savings will still be boosted by £250 - half of £500.
The account only lasts four years, and will stay open even if you stop receiving benefits but you won't be able to open another one once it's been closed.
Couples who live in the same household can open an account each if they both receive tax credits.
You'll need a current account before being able to open the saver and you can pay in by standing order or bank transfer.
You can apply or find out that you're eligible via the .
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It's just one of the savings schemes run by the Government - first-time buyers can also take advantage of the Help to Buy Isa which sees the Government boost savings by 25 per cent on sums up to £1,200.
But you'll need to open an account soon because the Help to Buy Isa is due to be scrapped at the end of the year.
It's being replaced by the Lifetime Isa which offers anyone over the age of 18 the chance to save tax-free and get a free Government bonus of up to £32,000 to use towards their first home, or retirement.
What to do if you have problems claiming Universal Credit
IF you're experiencing trouble applying for your Universal Credit, or the payments just don't cover costs, here are your options:
Apply for an advance - Claimants are able to get some cash within five days rather than waiting weeks for their first payment. But it's a loan which means the repayments will be automatically deducted from your future Universal Credit pay out.
Alternative Payment Arrangements- If you're falling behind on rent, you or your landlord may be able to apply for an APA which will get your payment sent directly to your landlord. You might also be able to change your payments to get them more frequently, or you can split the payments if you're part of a couple.
Budgeting Advance - You may be able to get help from the government to help with emergency household costs of up to £348 if you're single, £464 if you're part of a couple or £812 if you have children. These are only in cases like your cooker breaking down or for help getting a job. You'll have to repay the advance through your regular Universal Credit payments. You'll still have to repay the loan, even if you stop claiming for Universal Credit.
Cut your Council Tax - You might be able to get a discount on your Council Tax or be entitled to Discretionary Housing Payments if your payments aren't enough to cover your rent.
Foodbanks - If you're really hard up and struggling to buy food and toiletries, you can find your local foodbank who will provide you with help for free. You can find your nearest one on the
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