Published On: Fri, Dec 6th, 2019

Universal Credit UK claimants could get £1200 bonus money with saving account scheme | Personal Finance | Finance


With food and clothing to buy, and heating and housing costs to pay for, saving money is not the easiest of tasks. In a bid to help people who are on a low income boost their savings, some may be able to open a Help to Save savings account. This includes some people who get Universal Credit.

At the end of the second and fourth years, the saver can get the tax-free bonuses, which are based on how much has been saved.

How to get bonus with Help to Save

After the first two years of saving in the account, the account-holder will get their first bonus – if they have been using the account to save.

This payment will be 50 percent of the highest balance the person has saved.

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Fast forward to two years later, and if the saver has continued to save, they will get a final bonus.

This means that the final bonus is paid after a total of four years.

The bonus is 50 percent of the difference between two amount, with these being:

  • The highest balance saved in the first two years (years one and two)
  • The highest balance saved in the last two years (years three and four).

However, if the highest balance doesn’t rise, then a final bonus will not be earned.

Who is eligible for a Help to Save account?

It’s possible to open a Help to Save account if a person fulfils one of the following criteria. These are if they are:

  • Receiving Working Tax Credit
  • Entitled to Working Tax Credit and receiving Child Tax Credit
  • Claiming Universal Credit and the household earned £569.22 or more from paid work in the last monthly assessment period.

The saver also needs to be living in the UK.

However, those living overseas can apply for an account if they are either a:

  • Crown servant, or their spouse or civil partner
  • Member of the British armed forces or their spouse or civil partner.

The government website details how saving money through a Help to Save account could affect eligibility for certain benefits and the amount a person gets.



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