HMRC urges people on Universal Credit or Tax Credits to claim free £1,200 bonus
HMRC has urged people who are claiming Universal Credit to come forward for an "unbeatable" £1,200 bonus. Help to Save is a savings account run by HMRC for people who claim Universal Credit or Tax Credits - and for every £1 deposited, you get 50p back
.HMRC shared details of the scheme on X, formerly Twitter, saying: "For every £2 you save in a Help to Save account, you’ll get an extra £1 from the Government. Over time, this can add up." Help to Save is a type of savings account specially designed for low-paid workers. On the face of it, it's pretty simple. You can save between £1 and £50 a month, but you don't have to save every month.
At the end of two and four years, you're paid a 50% bonus, up to a maximum £1,200. It's easy access, so you can make withdrawals if you need to. After two years, you'll get the first 50% bonus paid into your bank account (not into the Help to Save account).
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Martin Lewis' Money Saving Expert team explained: "Once that's been paid, you can either decide to stop saving, or you can keep saving into it for another two years. Again, you can save between £1 and £50 a month, but you don't have to save every month. If you keep saving, you could get another bonus paid at the end of the four years."
Your Help to Save account will close 4 years after you open it. You will not be able to reopen it or open another Help to Save account. You’ll be able to keep the money from your account. You can close your account at any time.
If you close your account early you’ll miss your next bonus and you will not be able to open another one. You can open a Help to Save account if you’re receiving Working Tax Credit, Child Tax Credit – and you’re entitled to Working Tax Credit - or Universal Credit and you (with your partner if it’s a joint claim) had take-home pay of £793.17 or more in your last monthly assessment period.