Universal Credit claimants can get an extra £1,200 of tax-free cash following a government scheme extension.
Help to Save is a type of savings account that 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.
Jeremy Hunt, the chancellor of the exchequer, recently announced an extension of the Help to Save scheme, meaning claimants can apply for an account until April 2025.
READ MORE: DWP warning as new strict Universal Credit rules coming in
Help to Save account holders can save between £1 and £50 each calendar month by debit card, standing order or bank transfer. Bonuses are then paid out at the end of the second and fourth years based on how much has been saved.
Lucinda O’Brien, a personal finance expert at money.co.uk said: "For those on Universal Credit, the Spring Budget also highlighted Help to Save accounts and its attractive 50% bonus scheme.
"The good news is that applicants can now apply for an account until April 2025 as the government is keen for low-income earners to have a savings pot for a rainy day.
"The Help to Save scheme was due to end in September after its launch in 2018. However, the scheme is now even more important as many people are struggling with the cost of living crisis and finding it increasingly difficult to save each month."
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