At present around six million people are currently claiming Universal Credit across the UK, with a further five million households said to be receiving additional funding through Working Tax Credits.
However more people could now be eligible for Universal Credit after the taper rate and work allowance rule change last November, according to the Department for Work and Pensions (DWP).
Many people are aware that the cost of living is increasing with energy and shopping bills seeing price hikes.
Naturally people will be wanting to save money in any way that they can, though many remain unaware of their options that could help them boost their savings by 50%, according to The Daily Record.
The financial booster is not available everyone though Money Saving Experts (MSE) Martin Lewis has said that it's worth looking into in order to see if you're eligible.
A survey by the DWP about Help to Save, completed by almost three thousand people already on the scheme, revealed 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."
The report 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 the Help to Save scheme?
The Help to Save scheme helps those on a low income and people claiming certain benefits.
It is a state-operated scheme that allows people entitled to Working Tax Credits or receiving Universal Credit to get a bonus of 50p for every £1 they save over a period of up to four years.
It is also possible to take the money out from the account, but there’s a catch - the bonus payout is based on the highest amount of money you put in.
Even if you’re not able to set aside money for savings at the moment, open an account anyway, while you are eligible to do so, because you don't have to put any money in.
How does the Help to Save scheme work?
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.
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 however there is a limit you can pay in each calendar month of up to £50.
You can only withdraw money from your Help to Save account to your bank account.
How do the Help to Save 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 on the Help to Save scheme?
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.
Am I eligible for the Help to Save scheme?
You can open a Help to Save account if you tick one of the following and live in the UK:
Receive 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
Will the Help to Save scheme affect my benefit payments?
You can continue to receive Tax Credits or Universal Credit while saving with Help to Save.
If I stop claiming benefits can I still use the Help to Save scheme?
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.
