What Do You Know About The Government Help To Save Scheme?
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What Is The Help To Save Scheme?
The Help To Save Scheme is a venture put in place by our Government to help low-income workers save money over a 4 year period. For any amount you set aside between £1 and £50 a month, you’ll receive a 50% bonus. In a world where saving money is becoming increasingly harder, this scheme is designed to make the process a lot easier and we have to say it seems like a great ‘giving back’ move made by Government.
Further info below
What You Need To Know About The Help To Save Scheme
It offers great flexibility in the fact you don’t have to save money exactly every month, but rather when you possibly can. Running as a great incentive, the Government recognises saving money isn’t always an easy task by any means – something many people up and down the country certainly would have experienced during the pandemic.
Yes, those who take advantage of the scheme will receive a 50% bonus, but only after 2 years.
You need to save between £1 and £50 over a 24 month period before being rewarded your first 50% back which would be a maximum of £600.
(50 x 24 = 1,200), 1,200 / 2 = £600)
Your second 50% bonus will be given to you after year 4 meaning if you were to save £50 every month, you will receive another £600. (You do have the option to stop using the scheme after the initial 2-year time frame)
*We repeat* – You don’t have to save £50 every month and if you are planning on taking advantage of the Help To Save Scheme, you’re welcome to use the above calculation to work out how much you could save.
Take Advantage – It Even Allows For Cash Withdrawals
You will be given 50% back on the highest amount you have had in the account over the 2 year period.
This means if you had £1,000 in the account but needed to withdraw £100 for whatever reason, you will still receive a £500 bonus even if your balance was at £900.
It’s Better To Keep It In There For Years 3 & 4
Now you’ll still receive a 50% bonus after 4 years, but the rules slightly change should have needed to withdraw cash within the initial 2 years. In a nutshell, the bonus is 50% of the difference between the 2 highest balances after year 2 and year 4. Let’s simplify this in the below example:
You save £1,000 after the first 2 years.
But needed to withdraw £300 for car repairs.
You will still receive a £500 bonus after this initial 2 year period, even though the balance was at £700.
In years 3 and 4 however you then saved £600.
So how much would you receive after years 3 and 4?
1,000 – 600 = £400
400 / 2 = £200
Total bonus received after years 3 and 4 = £200
Total bonus after 4 years in this example = £700 over 4 years by having a peak of £1,600
Who Qualifies For The Help To Save Scheme?
To open a Help To Save Account, you need to match the following criteria:
Be a UK Resident or be posted overseas as a crown servant or with the armed forces and either:
- Be receiving universal credit and have an employment income of £617.73 or more for the last monthly assessment period
- Be entitled to working tax credit and receiving working or child tax credit
How Do I Open a Help To Save Account?
You can Apply For The Help To Save Account via the government’s website.
You’ll need your Government Gateway account details to sign in.
Alternatively, you can open an account by calling HMRC on 0300 322 7093
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