MARTIN Lewis has revealed how thousands on Universal Credit can access an “unbeatable” savings account that pays a 50% bonus.
The MoneySavingExpert website founder told viewers of his ITV Money Show last night you can earn £1,200 in free cash with a Help to Save account.
Those on tax credits or Universal Credit and earning a certain amount can open one of the accounts.
You can put in between £1 and £50 each calendar month and receive a 50% bonus on any cash saved.
Martin explained: “Totally unbeatable is Help to Save via gov.uk.
“It’s amazing. You put in up to £50 a month and then you get a 50% bonus.”
Jeanette Kwakye, who also co-hosts the Money Show alongside Martin, went on to share the story of a viewer who got a £500 bonus after opening one of the accounts.
Help to Save is a type of savings account available to those on tax credits and Universal Credit.
It is a Government-backed scheme which means your money is protected and you won’t lose any put in.
You can save between £1 and £50 each calendar month and get a 50p bonus for every £1 saved.
You can save into one of the accounts for a maximum of four years, with bonuses paid out at the end of the second and fourth year.
That means if you put in the maximum £50 a month for four years, you could get £1,200 in free money overall.
One major benefit to a Help to Save account is that you get a bonus at the end of the second or fourth years regardless of what your final balance is.
So, if for example you had £600 in your account and then took £300 out for an emergency and had £300 left at the end of the first two years, you would still get a £300 bonus – 50% of £600.
Currently, you can only open a Help to Save account if you are on Universal Credit and you, or you and your partner, had take home pay of £793.17 or more in your last monthly assessment period.
Take home pay is what your pay is after deductions such as National Insurance.
However, Budget documents revealed the scheme will be rolled out to all Universal Credit claimants who work from April 6 next year.
It’s worth bearing in mind, if the savings you have stashed away in a Help to Save account mean you breach £6,000 it could see your Universal Credit payments reduced.
This does not apply to those on working tax credits who have opened an account.
It’s worth checking you can claim Universal Credit as not only will you get payments on a regular basis, it can unlock other perks.
The Household Support Fund is a giant pot of cash worth £421million that has been shared between councils in England.
They then decide how to distribute their share of the cash, and who to distribute it to.
But, in most cases you will get help if you are on a low income or benefits, like Universal Credit.
The eligibility criteria varies from council to council but if you are on a low income or benefits it’s worth checking if you qualify for help.
You can find out what council area you fall under by using the Government’s council locator tool via gov.uk.
You can also get 85% of the cost of your childcare covered if you’re on Universal Credit.
The most you can get each month is £1,015 for one child and £1,739 for two or more kids.
And new or expectant mothers on Universal Credit can get one-off payments worth £500 through Sure Start Maternity Grants too.
YOU can use a benefits calculator to help check that you are not missing out on money you are entitled to
Charity Turn2Us’ benefits calculator works out what you could get.
Entitledto’s free calculator determines whether you qualify for various benefits, tax credit and Universal Credit.
MoneySavingExpert.com and charity StepChange both have benefits tools powered by Entitledto’s data.
You can use Policy in Practice’s calculator to determine which benefits you could receive and how much cash you’ll have left over each month after paying for housing costs.
Your exact entitlement will only be clear when you make a claim, but calculators can indicate what you might be eligible for.
Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk.
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