Martin Lewis urges Britons on benefits to look into the Help to Save scheme as people can benefit from a 50 percent bonus on their savings.
Millions of people on low incomes can still receive a 50 percent boost on their savings after Chancellor Jeremy Hunt announced that the Government scheme is to be extended.
The scheme – which was set to expire in September – is now to continue until April 2025.
Speaking on his podcast – The Martin Lewis podcast – the money saving expert said: “If you’re on Universal Credit there’s a potential 50 percent bonus on the Help to Save scheme.
“It’s well worth looking at that.”
The money saving expert has previously explained it is a “very worthwhile scheme” for trying to get some financial resilience and encourages people on low incomes to save.
He said: “I’m a big supporter of [the scheme], and I’m delighted to hear it has been extended until 2025.”
The scheme lasts for four years, and a person can deposit up to £50 a month, receiving a 50p bonus for each £1 they save.
This means if a person deposits the full £50 each month for the four years they will deposit a total of £2,400, and receive a £1,200 bonus.
The savings scheme is open to people on Working Tax Credit and on Child Tax Credit if they are entitled to Working Tax Credit.
Universal Credit claimants may also be eligible, if the claimant, or together with their partner for joint claims, had take-home pay of £658.64 or more in their last monthly assessment period.
Joint claimants can open a Help to Save for each person but they will need to apply separately.
Applicants also need to be UK residents, unless they are a crown servant or their spouse or civil partner, or a member of the British armed forces, or their spouse or partner.
People can pay money into their Help to Save account by debit card, standing order or bank transfer.
Money can be paid in whenever people can afford to as long as they don’t exceed the £50 limit each month.
For example, if someone has saved £50 by July 14, they will not be able to pay in again until August 1.
How to claim the 50 percent bonus
Britons get bonuses at the end of the second and fourth years. They’re based on how much someone has managed to saved.
The total amount that can be paid into the account over two years is £2,400 meaning the most someone can earn from their savings is £1,200.
Money can only be withdrawn by transferring funds from the Help to Save account to a person’s bank account.
A Help to Save account can be closed at any time although this does mean a person will lose their bonus and will not be able to set up a new one.
