Housing: PM announces changes to Universal Credit rules
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The savings account is backed by the Government offering a bonus 50p for each £1 that is saved over four years. People can pay in between £1 and £50 each month and can pay in as many times as they want.
This means that if a person pays in the full £50 each month, they will receive £1,200 over the four years.
Savers are not obliged to add funds every month.
Funds can be deposited by debit card, standing order or bank transfer.
Bonuses are paid at the end of the second and fourth years and these will be paid even if a person withdraws money.
The first bonus is based on the highest balance that has been saved.
At the end of the four years, the final bonus is based on the difference between the highest balance in the first two years and the highest balance saved in the last two years.
Savers will receive the bonus paid into their bank account, rather than into the Help to Save account.
Universal Credit recipients can set up an account if a claimant earned £658.64 or more from paid work in the last monthly assessment period.
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Couples who receive payments can each set up a Help to Save account.
The scheme is open to people on Working Tax Credit and Child Tax Credit.
The amount a saver receives from Universal Credit will not be affected as long as they have £6,000 or less in personal savings.
This includes any funds in their Help to Save account.
People on Housing Benefit will likewise not see their claim affected, as long as their savings are £6,000 or less.
Any bonuses received through Help to Save will also not affect Universal Credit payments.
Working Tax Credit claims will not be affected by a person having the account.
To apply, a Government Gateway user ID and password is needed.
Bank details must also be provided to set up the account.
Rishi Sunak recently launched a Financial Support and Benefits Checker Tool calculator, for Britons to check what benefits they are entitled to.
The tool asks a person up to 10 questions and cross-checks against 25 individual benefits and support offers.
Users are asked to input information about their work and home situation to find out extra help they can claim.
As the cost of living crisis continues, the Government has encouraged people to check their eligibility for financial assistance as many do not claim what they are entitled to.
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