Department for Work & Pensions DWP Help to Save Scheme
The new scheme from DWP Help to Save is a type of savings account that allows people on benefits such as Working Tax Credit or Universal Credit to get a bonus of 50p for every £1 they save over 4 years.
The Help to Save scheme is backed by the DWP & the government so all savings in the scheme are secure.
What is the help to save scheme
The Help to Save scheme is a savings scheme that is available to people who are on a low income and in receipt of certain benefits. The scheme is run by the UK government's Department for Work and Pensions (DWP) and is designed to encourage people to save by providing a bonus payment for those who save regularly.
To be eligible for the Help to Save scheme, you need to be in receipt of either Working Tax Credit or Universal Credit, and you must have earned income in your last assessment period. You can open a Help to Save account online or by phone, and you can save between £1 and £50 per month over a period of up to four years.
After two years of saving, you will receive a tax-free bonus payment of 50% of the highest balance you have saved, up to a maximum of £1,200. If you continue to save for a further two years, you can receive a second bonus payment of up to £600.
The Help to Save scheme is designed to help people on a low income to build up savings and improve their financial resilience. It is a simple and straightforward way to save, and the bonus payments can provide a valuable boost to your savings. If you are eligible for the scheme, you can find out more and apply online via the Gov.uk website or by calling the Help to Save helpline on 0300 322 7093.
How payments work
You can save between £1 and £50 each calendar month. You do not have to pay money in every month.
You can pay money into your Help to Save account by debit card, standing order or bank transfer.
You can pay in as many times as you like, but the most you can pay in each calendar month is £50. For example, if you have saved £50 by 10 march you will not be able to pay in again until 1 Aprill.
You can only withdraw money from your Help to Save account to your bank account.
How do the bonuses work
You get bonuses at the end of the second and fourth years. They’re based on how much you’ve saved.
What happens tp my account after 4 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.