On a low income? You could secure a boost of over £1,000 – take action

LOW INCOME individuals, such as those on Universal Credit and Working Tax Credit, may be entitled to a bonus of over £1,000 if they take action.

This Morning: Martin Lewis discusses Help to Save scheme

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Being on a low income can create a number of challenges, whether it comes to covering day to day costs in the home, or travelling further afield. However, another key issue to consider is building up a savings pot to help for rainy days, as well as larger goals. For those with a limited income, this goal is often less unachievable, as all of their money goes towards payments and the cost of living.

Understanding this, the Government has outlined a way to help individuals on a low income save towards their future.

This is achievable through the Help to Save scheme, a savings account which offers a 50 percent bonus on money put away.

The scheme is totally backed by the Government, providing security to savers who have their money put away here. 

For every £1 a person saves over four years, the Government has pledged to offer a bonus of 50 pence.

READ MORE: State pension warning as Britons forced to work past retirement age

low income help to save

On a low income? You could secure a boost of over £1,000 – take action (Image: Getty)

This could really add up in the long-run, offering significant help to Britons in reaching their savings goals.

Each calendar month, individuals on Help to Save can save between £1 and £50.

However, they do not have to pay money in each month, so can take breaks if they so wish.

For their diligence, Britons can expect to receive bonuses at the end of the second and fourth years of saving into this account.

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These will be based on how much a person chooses to save over this time period.

After the first two years, a person will get a bonus if using their account to save.

This bonus is calculated at 50 percent of the highest balance a person has saved during this time.

After four years, if someone continues to save into the account, the bonus they receive will be 50 percent of the difference between two amounts:

universal credit DWP

Low income: What is Universal Credit? (Image: EXPRESS)

  • The highest balanced saved in the first two years
  • The highest balance saved in the last two years

If a person’s highest balance does not increase, then they will not earn a final bonus from the account. 

With the most a person can pay into the account set at £50 per calendar month, this is a total of £2,400 over four years.

As a result, then, Britons can expect to receive up to £1,200 in bonus money from the Government.

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This bonus is then paid into a person’s bank account, rather than their Help to Save account. 

People can open a Help to Save account if they are receiving Working Tax Credit, or entitled to Working Tax Credit but in receipt of Child Tax Credit.

The account can also be opened by those claiming Universal Credit who earned £617.73 or more from paid work in their last assessment period.

Those who subsequently stop claiming benefits can still use their Help to Save account. 

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