If you are finding it a struggle to make any savings or have no savings, you may be interested in the government backed Help to Save scheme.
What is the Help to Save scheme?
This is a saving scheme to allow those who are in receipt of certain benefits to make affordable contributions towards their savings. Minimum contributions begin from £1 per month up to a maximum monthly amount of £50. The Help to Save account will remain open for four years and during this time, you can earn two tax-free bonuses which will be paid into your Help to Save account.
Am I eligible?
You will need to be in receipt of certain benefits in order to qualify:
- Universal Credit (please note – your household needs to have earned £569.22 or more from paid work in your last monthly assessment period)
- Receiving Working Tax Credit
- Receiving Child Tax Credit and entitled to Working Tax Credit
Even if you stop claiming the above benefits, you are still able to use your Help to Save account.
Will my Help to Save account affect my benefits?
The amount saved in your Help to Save account should not affect your benefits, if you receive any of the above benefits above, including Housing Benefit as long as the total amount of your savings does not exceed £6,000.
How do I apply?
You will need to create a Government Gateway user ID; more instructions are contained within the link.