On Universal Credit and earning even a little? This savings scheme could give our pot a juicy top-up.
Saving can feel like a joke when the money’s gone before payday. But Help to Save is built for putting away little bits, not stashing hundreds.
It’s a government savings account for people on Universal Credit who are earning, even just a small amount. We don’t have to save every month. And if a bill lands with a thud, we can take money back out.
The sweetener? For every £1 we save, the government can add 50p. So a few quid here and there could grow into a handy buffer for Christmas, school costs, or those “you’ve got to be kidding me” emergencies.
How Help to Save works
We can save between £1 and £50 each calendar month. We do not have to pay in every month, so there is no need to panic if money is tight.
The account lasts four years. Bonuses are paid twice:
- after two years
- after four years
The bonus is based on the highest amount we have managed to save. The most we can pay in is £2,400 over four years, and the biggest bonus we can get is £1,200.
That is a 50 per cent boost. Try getting that from a normal savings account!
Who Can Apply?
We may be able to open a Help to Save account if we get Universal Credit and had take-home pay of £1 or more in our last monthly assessment period.
Take-home pay means what is left after things like tax and National Insurance.
If we claim Universal Credit as a couple, both of us can apply for our own Help to Save account. That could mean two separate accounts, two lots of savings, and two possible bonuses.
What if our benefits change?
Here’s the reassuring bit. Once the account is open, we can keep using it even if we stop claiming benefits later.
So if we qualify now, it may be worth checking sooner rather than later.
Can we take money out?
Yes. We can withdraw money if we need it.
But there is a catch. Taking money out can make it harder to get the biggest bonus, because the bonus is based on our highest balance.
Still, it means the money is not locked away forever. If the boiler breaks, the school shoes give up, or the car starts making that expensive noise, we can get to our cash.
Will it affect benefits?
Savings in a Help to Save account count as personal savings.
For Universal Credit and Housing Benefit, savings of £6,000 or less do not affect payments. GOV.UK says this includes money in a Help to Save account.
The bonuses do not affect Universal Credit or Housing Benefit payments either.
If our savings are already close to £6,000, it is worth getting advice before adding more.
How to apply
We can apply online through GOV.UK.
We will need to sign in or create sign-in details. We may also need our National Insurance number or postcode, bank details, and some ID or financial information.
It may sound like faff. But for up to £1,200 extra, it could be faff worth facing.
Image: Ground Picture / Shutterstock
