Universal Credit is designed to help those who are out of work or who are on a low income – which has increased in recent months. But at the start of the new year, it is likely people will wish to tighten their belts and make savings where they possibly can. 2021 may be a time for individuals to become more financially efficient, and those who are on low income can achieve this goal too.
The bonus will be worth 50 percent of the highest balance a person has saved.
After the four year Help to Save period, Britons will receive their final bonus if they continue their savings journey.
The bonus will be worth 50 percent of the difference between two important amounts:
- highest balance saved in the first two years
- highest balance saved in the last two years
But it is important to be aware that should the highest balance not increase, then a final bonus will not be earned.
With the most a person can pay into an account standing at £50 each calendar month, this will be £2,400 over four years.
As a result, the most a person may be able to unlock from savings in four years is £1,200 in bonus money.
A bonus is paid directly into a person’s bank account, rather than their Help to Save account.
However, there are certain eligibility criteria to bear in mind when it comes to accessing this kind of account.
Universal Credit claimants must have earned £604.56 or more from paid work in their last monthly assessment period to be entitled.
Others who can access Help to Save include those receiving Working Tax Credit, and those entitled to Working Tax Credit and receiving Child Tax Credit.
In addition, a person needs to be living in the UK to apply for a Help to Save account.
The good news is that those who stop claiming benefits can still keep using their Help to Save account for their savings journey.
Britons can apply for a Help to Save account online, but will need to provide their UK bank details when they apply
Individuals will also need a Government Gateway user ID and password to apply, but can create one when applying if they do not currently have this.