The Help To Save scheme – free money if you get certain benefits

Did you know that if you’re on a low income and receiving certain benefits, you could get 50p from the government for every pound you save? It’s true! Here’s how it works.

Am I eligible for Help To Save?

You can take advantage of Help To Save if:

• You get Working Tax Credit; or
• You’re entitled to Working Tax Credit and receiving Child Tax Credit; or
• You’re claiming Universal Credit, and your household earned £604.56 or more from paid work in your last monthly assessment period.

You can check if you qualify for any of these using our benefits checker. If your benefit entitlement ends after you open a Help To Save account, you can carry on using your account.

How does Help To Save work?

You can pay up to £50 per month into your Help To Save account, for up to four years.

At the end of the first two years, you get a bonus equivalent to half the highest balance you’ve saved in that time – so if you’ve saved £600, for example, you’ll get a £300 bonus.

If you keep saving for a further two years you’ll get a final bonus: again, equal to half of the savings you’ve paid into your account over the last two years. So if you’re able to pay in the maximum every month, the government will pay you a total bonus of £1,200.

During your debt solution, you might only be able to save a few pounds here and there. But with Help To Save you’re paid a 50p bonus for every single pound you save. So even if you only pay in £5 every month, you could earn a total bonus of £120 – and build up your budgeting and saving muscles while you do it. If you’re eligible, it’s a win-win.

Can I benefit from Help To Save while I’m on…

A Debt Management Plan or the Debt Arrangement Scheme?

Yes! We recommend that you save money during your debt solution if you’re able to, either by including an amount for regular saving in your ‘financial statement’ budget that we create with you and/or by putting away money you’re able to save by staying under your budget. When you receive your bonuses, you can put them towards your debts, continue to save them or use them to treat yourself – it’s up to you.

An IVA or Trust Deed?

If you’re on an insolvency solution, it’s a little more complicated.

At the start of your debt solution, you discussed your budget with a debt advisor to ensure that you could afford the agreed payment into your debt solution alongside your usual bills. You may have agreed a small allowance for savings when this was worked out – if you’re on an IVA, this will have been £20 per month at the most.

You may also be able to save a little extra some months, by spending less you’d budgeted for, or if you earn a little extra (don’t forget you’ll need to let us know about any extra earnings). You can put this money into the Help To Save scheme too.

If you’re still on an IVA or Trust Deed at the point when your bonuses are paid, you will need to report them to us as additional income – and if they’re over £500, they will need to be paid into your debt solution. However, if your IVA or Trust Deed has ended by the time you receive your bonuses, they’ll be yours to keep!

 

Don’t forget, though, that withdrawing money from a Help To Save account takes around three days, so it’s not a suitable way to save for emergencies. Also, bear in mind that having total savings over £6,000 could affect your eligibility for certain benefits. Visit the government’s website for more information and to apply.