Help to Save extended with people on Universal Credit handed £1,200 windfall

Help to Save has been EXTENDED for two more years as people on Universal Credit could get a £1,200 windfall. The Department for Work and Pensions scheme has been extended by the new Labour Party government in the Chancellor's Budget.

Help to Save is the government savings scheme for low-income earners, which offers a 50% bonus payment worth up to £1,200 over 4 years. Savers can deposit between £1 and £50 a month into their account and will receive a government bonus– even if money has been withdrawn.

Savers will earn a 50 pence bonus for every £1 saved and the bonus payments are paid in the second and fourth years. This means that someone saving £2,400 - the maximum amount they could deposit over four years - would receive a £1,200 bonus from the government, paid directly into their bank account.

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Thomas Lawson, CEO of anti-poverty charity Turn2us, claimed what is being proposed is not enough. He explained: "Today’s Budget doesn’t go far enough. Our broken social security system is trapping millions of us in poverty.

"There are some positive steps, like raising the minimum wage and easing debt for Universal Credit recipients. But it’s not enough. The reforms to the Work Capability Assessment should be scrapped. They risk leaving 450,000 people, whose health prevents them from working, nearly £5,000 a year worse off.

"The Government needs to act. Scrap the two-child limit, scrap the 5-week wait, and raise Universal Credit to cover essentials. It’s time for a social security system that’s compassionate, free from stigma, and shaped by people with lived experience."

More than 359,200 customers have opened savings accounts since its launch in September 2018 and an additional 3 million individuals could still benefit from the savings scheme as a result of the extension. Myrtle Lloyd, HMRC’s Director General for Customer Services, said: "Help to Save can encourage positive saving habits – no matter what you can afford to save – and the 50% government bonus payment can help savers when they need it most.

"It is quick and easy to apply online or via the HMRC app, just search ‘help to save’ on GOV.UK to find out more."