29 June 2023
With the ‘cost-of-living’ being a phrase never out of the news for more than a day, it is important to raise initiatives that can assist people. HM Revenue and Customs (HMRC) has provided the below to highlight how 'help to save' accounts can be used by low earners. If you have anyone within your business who may qualify, it might be beneficial to signpost to additional resources where possible.
Help to Save is a government backed savings account. It allows certain people entitled to Working Tax Credit or receiving Universal Credit to get a bonus on top of their savings. To encourage saving, account holders will receive a 50% tax-free bonus worth 50p for every £1 saved.
The customer must be a UK resident and:
- receive Working Tax Credit (WTC); orâ
- Have a nil award of WTC but receiving Child Tax Credit; orâ
- in receipt of Universal Credit with minimum household earnings equivalent to 16 hours times the National Living Wage in their last income assessment period.
If someone is part of a joint award and eligible for Help to Save, they can each open an account.
Accounts are easy to use, flexible and secure, allowing people to save anything from £1 to £50 per month. Customers can pay in as many times as they like, but the most they can pay in each month is £50. Customers saving the maximum £2,400 over a four-year period will receive a total government bonus of up to £1,200. Bonuses are paid after 2 and 4 years.
The scheme has recently been extended until April 2025. Andrew Griffith, Economic Secretary to the Treasury, said:
Millions of people could benefit from a boost to their savings through Help to Save and thanks to our Spring Budget reforms the scheme has been extended until 2025.
Whatever amount you can save will trigger a top up from the Government, so take advantage and apply today.
You can find out more about how to apply here: Get help with savings if you’re on a low income (Help to Save): How it works - GOV.UK (www.gov.uk)
A video explanation is also available: Help to Save savings explained - YouTube
Information provided in this news article may be subject to change. Please make note of the date of publication to ensure that you are viewing up to date information.
