Almost 6 million people in the UK claim Universal Credit from the Department for Work and Pensions (DWP), with another 5 million receiving financial help through Working Tax Credits.
Due to changes being made to the taper rate and work allowance regulations in November last year, the DWP has estimated that approximately 500,000 households may now be eligible for Universal Credit who weren't before.
As reported by the Daily Record, many who claim benefits are unaware of an initiative intended to assist them by boosting their savings by 50%.
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Although the scheme is not available to everybody, it could help many benefits claimants put some money away for a rainy day.
According to research by the DWP and HMRC, part of the scheme's success can be attributed to Martin Lewis — who has promoted it many times along with his MoneySavingExpert.com team.
The research consisted of an online questionnaire that was filled in by over 2,740 Help to Save customers between December 2020 and January 2021 — as well as an additional 33 follow-up interviews conducted last March.
The report stated: "The research found that Help to Save customers are predominantly working women with children at home - in line with the general profile of the Tax Credit population. A third are single parents. MoneySavingExpert was found to be a key source of awareness of the scheme."
It added: "Customer views on Help to Save are overwhelmingly positive, with a significant majority recommending the scheme to others."
You can read the full report on Help to Save on the GOV.UK website here.
What is Help to Save?
The Help to Save scheme allows people on a low income, or who claim certain benefits, to open a special account to help them add to their savings.
It is a state-operated initiative that lets people who receive Universal Credits, or who are entitled to Working Tax Credits, get a bonus of 50p for each £1 they save over a period of up to four years.
People with the account are allowed to take money out of it, but the catch is that the bonus payout is determined by the highest amount of money that is put in.
Even people who are unable to save money at the moment should open an account whilst they are eligible, because putting money into it is not mandatory.
How the Help to Save scheme works
The scheme allows certain people entitled to Working Tax Credit or receiving Universal Credit to get a bonus of 50p for every £1 they save over four years.
Help to Save is backed by the UK Government so all savings in the scheme are secure.
How payments work
You can save between £1 and £50 each calendar month - you don’t have to pay in every month.
Payments can be made by debit card, standing order or bank transfer.
You can pay in as many times as you like, but the most you can pay in each calendar month is £50.
You can only withdraw money from your Help to Save account to your bank account.
How bonuses work
You get bonuses at the end of the second and fourth years - these are based on how much you have saved.
The most you can pay into your account each calendar month is £50, which is £2,400 over 4 years.
The most you can earn from your savings in 4 years is £1,200 in bonus money.
What happens after four years?
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 can close your account at any time. If you close your account early you will miss your next bonus and you will not be able to open another one.
Eligibility
You can open a Help to Save account if you are:
Receiving Working Tax Credit
Entitled to Working Tax Credit and receiving Child Tax Credit
Claiming Universal Credit and your household earned £604.56 or more from paid work in your last monthly assessment period
Getting payments as a couple. You and your partner can apply for your own Help to Save accounts - you need to apply separately
You also need to be living in the UK.
Will it affect my benefit payments?
You can continue to receive Tax Credits or Universal Credit while saving with Help to Save.
What happens if I stop claiming benefits?
You can keep using your Help to Save account.
For more information and to set up your Help to Save account, visit the GOV.UK website here.
