Help to save scheme to be expanded in April

A government-backed scheme that lets people on universal credit boost their savings is to be expanded next month.

Help to save accounts allow certain people entitled to working tax credit or receiving universal credit to get a bonus of 50p for every pound they save over four years.

This can boost a person’s savings by up to £1,200.

At the moment, the existing earnings threshold for universal credit claimants is set at the equivalent of 16 hours a week at the national living wage.

But from 6 April, eligibility for the scheme will be extended to all universal credit claimants who are in work.

The government believes the changes will make the scheme accessible to more households in need and put them in a better position to cope with financial shocks.

How to apply for a help to save account

To set up a help to save account, you’ll need a Government Gateway user ID and password.

When completing your application, you’ll need your national insurance number or postcode and two of the following:

• a passport
• a UK photocard driving licence
• a payslip from the last three months or a P60 for the last tax year
• details of a tax credit claim
• details from a self assessment tax return made in the last two years
• the information held on your credit record

You’ll also need your UK bank details.

What else is the government doing?

The government has already introduced a new fair repayment rate to cap deductions on universal credit to 15% of the standard allowance.

That’s down from 25% previously and should boost the finances of 1.2m households on universal credit by £420 a year on average.

A financial inclusion strategy is also being developed, so more people can have access to the products they need to become more financially resilient.