The government has recently launched a new scheme to support working people on low incomes to build their savings. The current austerity measures can make it difficult to find extra cash, let alone money for savings. However, savings play an important role in helping families prepare and plan for the future.
How the plan works: Over 4 years, regular savers can deposit from £1 up to £50 a month and could receive up to £1,200 in tax-free bonuses. (The £1200 bonus is based on saving £50 a month for 4 years).
The scheme is administered by HM Revenue and Customs, open to UK residents who meet the following criteria:
• entitled to Working Tax Credit and receiving Working Tax Credit or Child Tax Credit payments
• claiming Universal Credit and have a household or individual income of at least £542.88 for their last monthly assessment period
Accounts must be open for a minimum of two years before you can access the bonus. After two years, savers can decide to keep their accounts open for another two years, or withdraw their money and close the account.
You will need to create a government gateway account online to open a Help to Save account. This is simple to do, if you have any difficulty then you can visit your local Citizens Advice office who will be able to assist.
Further info can be found using the following website address: https://www.tax.service.gov.uk/help-to-save
