Universal Credit and Working Tax Credit recipients are usually on a low income, but working to make ends meet. It is often a challenge for people to put money aside with the costs of everyday life, however, many individuals could find they are rewarded for doing so. This can be achieved through a process known as Help to Save, an account dedicated to helping those on a low income.
Individuals can expect to receive two tax-free bonuses across a four year period.
These can be unlocked regardless of whether a person chooses to withdraw any money across the account’s term, or not.
After the first two years of saving, Britons can expect to receive their initial bonus, which is 50 percent of the highest balance someone has saved.
If continuing to save after this point, then after another two years a second and final bonus can be unlocked.
This therefore means the most someone can get in Government bonuses out of the Help to Save scheme is £1,200.
The bonus is paid directly into a person’s bank account, tax-free, rather than their Help to Save account.
A person can open a Help to Save account if any of the following apply
- They are receiving Working Tax Credit
- They are entitled to Working Tax Credit and receiving Child Tax Credit
- They are claiming Universal Credit and they earned £617.73 or more from paid work in their last monthly assessment period