Government helps those on low incomes to save | Debt Advice Foundation

Government helps those on low incomes to save

Help-to-Save Scheme officially launches

A new savings account has been launched by the UK Government in a bid to encourage low-paid households to save for a rainy day.
Via a Help-to-Save account, an estimated 3.5 million people on working tax credits or universal credits will be given a 50% bonus on every £1 saved over a four-year period.

Help-to-Save was first announced in March 2016, but only launched on the 12th of September after a trial run involving 45,000 individuals, who managed to save a total of £3m during the pilot.
Savers can deposit between £1 and a maximum of £50 every month, though they do not have to pay in every month. A 50% bonus is added in year two and at the end of the four year period.
An individual can pay in a maximum of £2,400, receiving a £1,200 bonus. As a Government scheme, all savings are secure. The government estimates that the scheme will cost the Treasury £255m by 2022-23.
After the four years the account is closed, and participants are not allowed to open another. If a saver closes the account early, they won’t be able to open another, nor will they be able to receive their final bonus.
Applicant will need a bank account to apply for the scheme, which can be done here.
Helpine Logo
Helpline Callback

If you’re unable to call our free debt helpline number 0800 043 40 50 right now, you can fill in the form below and one of our advisors will call you back at a time of your choosing.

Call for FREE debt advice on

0800 043 40 50

Monday to Friday 8am to 6pm