Britons have been awarded a £1,200 savings boost as part of a wider £300million payment over the years thanks to a Government scheme – but are you missing out?
HM Revenue and Customs (HMRC) is using UK Savings Week to urge low-income workers to take advantage of Help to Save, a Government-backed scheme that provides a 50 per cent bonus on monthly deposits of up to £50.
Since launching in September 2018, the programme has attracted 656,700 account holders, with bonus payments exceeding £300million in total.
Savers have collectively deposited £676.7million into their accounts through the scheme, which is designed to help those on lower incomes build a financial cushion.
Are you eligible for a £1,200 savings boost?
|
GETTYThe tax authority is now stepping up efforts to raise awareness, with thousands of additional people set to become eligible in the coming years.
HMRC wants to ensure that everyone who qualifies knows about the opportunity to grow their savings with substantial Government support.
Account holders can set aside between £1 and £50 each month, with the government adding 50 pence for every pound saved.
Each account runs for a maximum of four years, during which savers can deposit up to £2,400 in total.
How much will HMRC rake in from the so-called savings tax? | HMRC / AJ BELL
Those who reach the ceiling stand to receive a Government bonus of up to £1,200, paid directly into their bank accounts.
Bonuses are calculated based on the amount saved and distributed at the end of the second and fourth years of the account’s life.
Notably, 94 per cent of those who have opened an account put away the full £50 each month, according to the latest figures.
From 2028, the scheme will open its doors to all Universal Credit claimants, bringing an estimated 1.5 million additional households into eligibility. The earning criteria will also be scrapped for those with caring responsibilities.
Uncertainty grows for millions of savers | GETTY
In a further change, Help to Save will shift to a multi-provider model, allowing banks, building societies and credit unions to offer the scheme directly to qualifying customers rather than it being available through a single provider.
Economic Secretary to the Treasury Lucy Rigby said: “Help to Save is a really beneficial scheme that offers a 50 per cent Government bonus on whatever you are able to save. We want more eligible people to take advantage of it.”
Peter Tyler, the director of Personal Banking at UK Finance, said: “Expanding Help to Save and enabling more financial services providers to offer the scheme directly is a positive step towards helping people build financial resilience.
“The scheme provides eligible customers with a great opportunity and incentives to develop regular savings habits.”