Martin Lewis urges people on certain benefits not to miss out on 'unbeatable' £1,200 bonus payment

Linda Howard
·4-min read

Martin Lewis is urging people on certain means-tested benefits not to miss out on a “totally unbeatable” 50 per cent boost on money put into a unique savings account run by the UK Government. During the Martin Lewis Money Show Lice on Tuesday, the financial guru explained how the ‘Help to Save’ scheme is currently only available to those on Universal Credit or Tax Credits earning over £793 each month.

However, he told ITV viewers how Chancellor Rachel Reeves announced during the recent Autumn Budget that from April next year people on those benefits earning just £1 each month will be able to open an account and join this savings scheme, which is fully protected by the UK Government. Martin said: “It’s amazing. You put in £50 a month, and then you get a 50 per cent bonus.”

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He continued: “Imagine you put in £50 a month for a year, you've now got £600 in, unfortunately you've had an emergency and you have to take it out. You can't put any more in for the rest of the two years, what was the highest amount you had in? £600, half of £600 is £300 - you still get £300 bonus even though you’ve got nothing in the account.”

Lucy contacted the show by email to share her success with the Help to Save scheme. She wrote: “I started a Help to Save account after seeing it on the show, I get my two year bonus next month of over £500, straight into my bank.”

Full details on the Help to Save scheme can be found on GOV.UK here.

The latest figures from the Department for Work and Pensions (DWP) show that in April there are now 5.7 million households across Great Britain claiming Universal Credit.

What is Help to Save?

The Help to Save account is a state-operated scheme which millions of people on a low income, or claiming certain benefits, could be eligible to join. In simple terms, for every £1 you put in you get a 50p bonus over a period of up to four years.

However, you can also take the money out from the account at any time, but there’s a catch - the bonus payout is based on the highest amount of money you put in.

Even if you’re not able to set aside money for savings at the moment, open an account anyway, while you are eligible to do so, because you don't have to put any money in.

How payments work

You can save between £1 and £50 each calendar month - you don’t have to pay in every month. Payments can be made by debit card, standing order or bank transfer.

You can pay in as many times as you like, but the most you can pay in each calendar month is £50. You can only withdraw money from your Help to Save account to your bank account.

How bonuses work

You get bonuses at the end of the second and fourth years - these are based on how much you have saved.

Example:

If you put £50 in each month for the first two years - a total of £1,200 - your first bonus payment would be for £600, even if you withdraw it all (but you would need to wait until the 24th month or the bonus payment would be less).

Similarly, if you then add £50 for the next two years, you would receive another £600 payment. This means that in total, you could earn a free £1,200 and if you kept the money in or the whole four years, you would receive an impressive £3,600 when the account closes.

What happens after four years?

Your Help to Save account will close four years after you open it. You will not be able to reopen it or open another Help to Save account. You can close your account at any time. If you close your account early you will miss your next bonus and you will not be able to open another one.

Eligibility

You can open a Help to Save account if you are:

  • receiving Working Tax Credits

  • receiving Child Tax Credits and are entitled to Working Tax Credits

  • receiving Universal Credit and you (with your partner, if it is a joint claim) had take-home pay of £793.17 or more in your last monthly assessment period

HMRC has prepared a video on YouTube to help customers find out more about Help to Save.

Getting payments as a couple

You and your partner can apply for your own Help to Save accounts - you need to apply separately. You also need to be living in the UK.

Will it affect my benefit payments?

You can continue to receive Tax Credits or Universal Credit while saving with Help to Save.

What happens if I stop claiming benefits?

You can keep using your Help to Save account until the four years ends.

For more information and to set up your Help to Save account, visit the GOV.UK website here.

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