Help to save finally launched by government for those on low incomes - save up to £50 each month.  Good interest rate
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Help to save finally launched by government for those on low incomes - save up to £50 each month. Good interest rate

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Refreshed 17th Oct (Posted 12th Sep)
Please follow link for details.

The scheme, administered by HM Revenue and Customs, is open to UK residents who are:
  • entitled to Working Tax Credit and receiving Working Tax Credit or Child Tax Credit payments
  • claiming Universal Credit and have a household or individual income of at least £542.88 for their last monthly assessment period (though note that payments from Universal Credit are not considered to be part of your household income). Figure correct in 2018.

Once confirmed as eligible, customers can start saving straight away. All transactions, including checking the balance and paying in savings, can be managed in an online account available through GOV.UK.

Customers can save up to £50 each month.

At the end of 2 years, savers will get a 50% bonus based on the highest balance achieved.

Customers can carry on saving for another 2 years and get another 50% bonus on their additional savings.

Over 4 years, those saving the maximum of £2,400 will receive bonuses of £1,200.

Money paid into the account can be withdrawn by customers at any time, but this could affect the size of the bonus payment.

Accounts will be available to open for 5 years (until September 2023).
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Top comments
holeymoley1813 m ago

Agreed! The mega poor can't afford to save surely? Those who are taking …Agreed! The mega poor can't afford to save surely? Those who are taking benefits and have money left over are being given too much. Surely benefits are handed out because you are deemed to need them for day to day living? If you don't, or could be more frugal if you wanted to be, then that money should be taken off you and reallocated to someone who actually needs it! As for rewarding savers of benefit pounds with more tax free pounds is a joke as surely that redirects even more money into the hands of those who can do without? If you need help to meet bare needs then the welfare state should help. If you need over and above that get a job (or two). Lots of us are doing it!


People on benefits are expected to pay for emergencies though - such as their fridge or cooker needing replacement. How do they do this without saving a few quid? So if this scheme helps with them put away a bit of money for emergencies, then they don't have to get in debt with high interest loans, so it's a good thing.

Some savings aren't a luxury indulgence, they are essential to cover life's unexpected and unwelcome problems. Even a modest £100 in the bank can be enough to stop people having to rely on loans and debt, which helps them manage their life better, maybe even stopping them spiral into more and more debt.
deleted92912612th Sep

Don't people who work full time also have to save and pay for emergencies? …Don't people who work full time also have to save and pay for emergencies? That's hardly a good argument. I know first hand having a family member who lives on benefits and it disgusts me; rent paid, council tax paid, bt-basic, warm home discount, free motability car with insurance and servicing paid for and then they get the benefit payments on TOP of all that (or his WAGE as he calls it). I work minimum 39hours a week and have less disposable income than they do, and now they'll get free money for not spending the benefit payments that they blow on lottery and booze/fags anyway. Incidentally, he's not a "benefit cheat", he just claims everything he's apparently "entitled to", and is actually moderately disabled. It just makes you wonder why you bother working hard.


So you resent your disabled family member being able to live decently, without fear of homelessness or hunger? The problem is that work doesn't pay well enough, you should be earning more for your hardwork - you should be resentful of that not your disabled family member.
This is not for people on the dole this is for people who work. Disgusting attitude of some people on here.

Surprised i haven't seen "flat screen tv" mentioned yet.

ps I wouldn't use this scheme even if i was entitled seems a bit big brother by the government.
I joined the pilot of this scheme and am by no means 'well off' I've skrimped and saved to put the £50 a month away because it is a good deal and I'd be mad not too, if I can find a way to make it work. I'm on £25k in London. I don't get help towards housing or council tax. My salary doesn't stretch very far here but having a safety net is important to me as a single parent so i've made sacrifices where I can to start building one.
106 Comments
Thx @kzlbfx This seems a really good incentive by Gov, this will help lots of people especially if they can manage to stay in it until the maximum term. Heat added
Thanks for the icon HUKD
Is this tax free or you have to pay the government to save your own money. What will happen if you can't last the 5 years and you lose your job and can't pay £50.00 would you be able to double whatever you pay in
Only if you’re on tax credits
Can you opt out of having your taxes go to this scheme when you aren’t eligible yourself as you work hard?
But once they have all these savings sitting nicely in the bank won't their benefits then be cut?
Thanks OP worth looking into
Child tax credits? So that means anyone with children then?
waitingfordeals3 m ago

Child tax credits? So that means anyone with children then?


Yeah but you still need a income of £542 per month not counting any universal benefits
Edited by: "dunny06" 12th Sep
Child tax credit is different to Child benefit
Eldi32 m ago

Not available to people who pay there own way but still have low income.


If you work and one a low income you should be entitled as surly have you even tried to claim working tax credits before I was on 36 hour weeks minimum wage and got 56 pound off working tax each week still far from manageable and no way could I offord to save 50 pounds a month
holeymoley1813 m ago

Agreed! The mega poor can't afford to save surely? Those who are taking …Agreed! The mega poor can't afford to save surely? Those who are taking benefits and have money left over are being given too much. Surely benefits are handed out because you are deemed to need them for day to day living? If you don't, or could be more frugal if you wanted to be, then that money should be taken off you and reallocated to someone who actually needs it! As for rewarding savers of benefit pounds with more tax free pounds is a joke as surely that redirects even more money into the hands of those who can do without? If you need help to meet bare needs then the welfare state should help. If you need over and above that get a job (or two). Lots of us are doing it!


People on benefits are expected to pay for emergencies though - such as their fridge or cooker needing replacement. How do they do this without saving a few quid? So if this scheme helps with them put away a bit of money for emergencies, then they don't have to get in debt with high interest loans, so it's a good thing.

Some savings aren't a luxury indulgence, they are essential to cover life's unexpected and unwelcome problems. Even a modest £100 in the bank can be enough to stop people having to rely on loans and debt, which helps them manage their life better, maybe even stopping them spiral into more and more debt.
M_z16 m ago

People on benefits are expected to pay for emergencies though - such as …People on benefits are expected to pay for emergencies though - such as their fridge or cooker needing replacement. How do they do this without saving a few quid? So if this scheme helps with them put away a bit of money for emergencies, then they don't have to get in debt with high interest loans, so it's a good thing. Some savings aren't a luxury indulgence, they are essential to cover life's unexpected and unwelcome problems. Even a modest £100 in the bank can be enough to stop people having to rely on loans and debt, which helps them manage their life better, maybe even stopping them spiral into more and more debt.


Well argued, and I find myself agreeing with you.
A small float to help ride the normal financial bumps is a good idea for everyone, but surely if you can afford to save anywhere near the £50 a month then you are being given too much! That money gets taken from somebody else to give to you because you are deemed to need the support. If you can squirrel it away then you don't need it and shouldn't be getting it.
deleted92912612th Sep

Don't people who work full time also have to save and pay for emergencies? …Don't people who work full time also have to save and pay for emergencies? That's hardly a good argument. I know first hand having a family member who lives on benefits and it disgusts me; rent paid, council tax paid, bt-basic, warm home discount, free motability car with insurance and servicing paid for and then they get the benefit payments on TOP of all that (or his WAGE as he calls it). I work minimum 39hours a week and have less disposable income than they do, and now they'll get free money for not spending the benefit payments that they blow on lottery and booze/fags anyway. Incidentally, he's not a "benefit cheat", he just claims everything he's apparently "entitled to", and is actually moderately disabled. It just makes you wonder why you bother working hard.


So you resent your disabled family member being able to live decently, without fear of homelessness or hunger? The problem is that work doesn't pay well enough, you should be earning more for your hardwork - you should be resentful of that not your disabled family member.
holeymoley187 m ago

Well argued, and I find myself agreeing with you. A small float to help …Well argued, and I find myself agreeing with you. A small float to help ride the normal financial bumps is a good idea for everyone, but surely if you can afford to save anywhere near the £50 a month then you are being given too much! That money gets taken from somebody else to give to you because you are deemed to need the support. If you can squirrel it away then you don't need it and shouldn't be getting it.


Yes, a spare £50 every month does sound a lot, but my understanding is that its flexible between £1 and £50. So if someone gets a £50 birthday present, they might think I'll save it, rather than I'll blow it?
I think it's a good scheme for people who are working on a low wage and getting working tax credits as its only £1.78 per day and you get a good bonus after 2 years. Unfortunately I carnt get it as I don't claim any in work tax credits.
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deleted929126
M_z7 m ago

So you resent your disabled family member being able to live decently, …So you resent your disabled family member being able to live decently, without fear of homelessness or hunger? The problem is that work doesn't pay well enough, you should be earning more for your hardwork - you should be resentful of that not your disabled family member.


No my disgust is towards the entire benefit system. No-one should be better-off out-of-work. It's not financially feasible to suddenly hike the minimum wage overnight, it would bankrupt the majority of companies. I've no idea how to fix the situation but neither do our politicians it seems.
Hate to be that guy but it bothers me as well they shouldnt be called benefits, they should be called hardships you shouldnt money to save.
hopper_papa_roac7 m ago

Hate to be that guy but it bothers me as well they shouldnt be called …Hate to be that guy but it bothers me as well they shouldnt be called benefits, they should be called hardships you shouldnt money to save.


But the idea is that you pay national insurance when you are working, then if you have a bit of bad luck, you are entitled to some help - you pay in when you can, you take out if you have the need. I know its easy as a hardworking person to think it will never happen to me, but people do have bad luck through no fault of their own, they get made redundant, they have accidents, they have mental health problems. Its not wrong that when this happens that they are entitled to help - they shouldn't be stigmatised and punished with something called "hardships".
This is not for people on the dole this is for people who work. Disgusting attitude of some people on here.

Surprised i haven't seen "flat screen tv" mentioned yet.

ps I wouldn't use this scheme even if i was entitled seems a bit big brother by the government.
M_z26 m ago

Yes, a spare £50 every month does sound a lot, but my understanding is …Yes, a spare £50 every month does sound a lot, but my understanding is that its flexible between £1 and £50. So if someone gets a £50 birthday present, they might think I'll save it, rather than I'll blow it?


Yet again I agree with you. Yes tucking away little windfalls like birthday money should be applauded, but in reality who is actually going to do that? Also under the terms of the account someone could deposit that 'birthday money' one day, withdraw it and spend it the next and still have it potentially count towards the bonus. Not really in the spirit of the offer.
If some thoughtful individual decided to pop a couple of quid away each week to withdraw for new school uniforms then high 5, but surely any responsible adult would do that anyway if they could, with or without this incentive? Just because you life close to the breadline it doesn't mean that you are stupid and irresponsible (although in my experience lots are). However, it also allows the more opportunistic in the benefit system a place to stash their holiday loot, withdraw it to pay for a week in the sun, and get a nice little earner to boot. All kinds of wrong. And before you ask, no, people being handed subsistence assistance are not entitled to a holiday. It is a luxury, not a necessity. Harsh but true, even if you do have kids!
holeymoley1811 m ago

Yet again I agree with you. Yes tucking away little windfalls like …Yet again I agree with you. Yes tucking away little windfalls like birthday money should be applauded, but in reality who is actually going to do that? Also under the terms of the account someone could deposit that 'birthday money' one day, withdraw it and spend it the next and still have it potentially count towards the bonus. Not really in the spirit of the offer. If some thoughtful individual decided to pop a couple of quid away each week to withdraw for new school uniforms then high 5, but surely any responsible adult would do that anyway if they could, with or without this incentive? Just because you life close to the breadline it doesn't mean that you are stupid and irresponsible (although in my experience lots are). However, it also allows the more opportunistic in the benefit system a place to stash their holiday loot, withdraw it to pay for a week in the sun, and get a nice little earner to boot. All kinds of wrong. And before you ask, no, people being handed subsistence assistance are not entitled to a holiday. It is a luxury, not a necessity. Harsh but true, even if you do have kids!


Fair enough, but we are talking about working but low earning people here, not people necessarily on subsistence. I wouldn't begrudge them a modest holiday, a caravan in Skeggy or a family room in a Travelodge for a few days myself, but I respect that not everybody feels the same.
holeymoley181 h, 39 m ago

Agreed! The mega poor can't afford to save surely? Those who are taking …Agreed! The mega poor can't afford to save surely? Those who are taking benefits and have money left over are being given too much. Surely benefits are handed out because you are deemed to need them for day to day living? If you don't, or could be more frugal if you wanted to be, then that money should be taken off you and reallocated to someone who actually needs it! As for rewarding savers of benefit pounds with more tax free pounds is a joke as surely that redirects even more money into the hands of those who can do without? If you need help to meet bare needs then the welfare state should help. If you need over and above that get a job (or two). Lots of us are doing it!


When you are poor there are lots of things you need to save for as well School uniforms,Xmas, etc.
Try working with the poor for a while.
Yikes this kind of post does bring out the "if i can't get it why should they brigade"

heat added thanks for posting hopefully it will help some people.
Unfortunately this got the same response last time it was posted..
It's a great scheme for encouraging people to save money, which in turn will hopefully make them less reliant on loans and benefits.
I joined the pilot of this scheme and am by no means 'well off' I've skrimped and saved to put the £50 a month away because it is a good deal and I'd be mad not too, if I can find a way to make it work. I'm on £25k in London. I don't get help towards housing or council tax. My salary doesn't stretch very far here but having a safety net is important to me as a single parent so i've made sacrifices where I can to start building one.
I think you'll find that the benefits you RANT about where originally a "TAX REALIGNMENT" after the tax coding system changed. For those who are more fortunate than others, just a quick note, when our kids were of school age, my Missus worked when she wasn't looking after the kids and i had (and still have, two jobs) one full time and one weekend job, AND WE WERE STILL ABLE TO GET TAX CREDITS AND/OR CHILD TAX CREDITS. So maybe bear this in mind my lovely rabid ranters, it ain't necessarily cos people are scroungers, These benefits, as many of you kind hearted people keep calling them, are available to people with full time jobs who are just on a low income.
malm19 m ago

When you are poor there are lots of things you need to save for as well …When you are poor there are lots of things you need to save for as well School uniforms,Xmas, etc.Try working with the poor for a while.


I do!
M_z1 h, 49 m ago

People on benefits are expected to pay for emergencies though - such as …People on benefits are expected to pay for emergencies though - such as their fridge or cooker needing replacement. How do they do this without saving a few quid? So if this scheme helps with them put away a bit of money for emergencies, then they don't have to get in debt with high interest loans, so it's a good thing. Some savings aren't a luxury indulgence, they are essential to cover life's unexpected and unwelcome problems. Even a modest £100 in the bank can be enough to stop people having to rely on loans and debt, which helps them manage their life better, maybe even stopping them spiral into more and more debt.


Exactly. It’s just about trying to be responsible about those extra expenses before they occur rather than waiting for them to happen and having to rely on debt (with the associated interest to pay) to deal with them. The latter scenario costs the benefit recipient more ‘tax payer’ money for no other reason than saving for it after the fact rather than before. The expense is unavoidable either way. It’s reasonable to save 10% of your income for such situations, even if that income is very low to begin with.

Although, it’s worth pointing out that this scheme isn’t designed for the people we’re talking about. It’s specifically aimed at those more in the middle, with a non-benefit income of £543+ BEFORE benefits get added on. So, those most in need of it are actually excluded and may very well still have to resort to debt if the ordinary measly interest rates aren’t incentive enough for them to plan ahead.
I receive only child tax credit but not the working tax credit am I still eligible for this scheme?
cheapnnasty116 m ago

I receive only child tax credit but not the working tax credit am I still …I receive only child tax credit but not the working tax credit am I still eligible for this scheme?


Yeah I think so
35175489-lUrX1.jpg
People on low incomes work equally hard if not more so. The person stacking shelves work is harder than the executive who makes a decision.
This is to see how much spare income those on benefits have each month so they can work out how much to deduct!!! Total scam no way! I pay my way and recieve some benefit and its not enough to save! Dont be fooled
They will do what hey want anyway. Might aswell get as much back as your entitled to.
Have been saving in this for a while now. I DON'T get any tax credits of any form, yet still eligible, I guess because of low income.
This will help the self employed tradesmen who are apparently on minimum wage!
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deleted1956543
Misslovely6 h, 1 m ago

You don't understand the logic. Once someone has 6k in bank their benefits …You don't understand the logic. Once someone has 6k in bank their benefits get reduced. So the government is actually playing it clever.


Where does it state that?
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deleted1956543
I signed up to this, along with my partner. We have made the x2 £50 payments each month but it hasn’t been easy. We have a daughter and both on minimum wage as carers.

Like I said, we’ve definitely noticed we’ve got less free money each month. Infact for me personally, after all bills are taken out, I usually have about £25 a week left. That doesn’t include shopping or electric/gas.

So yes it’s been really tough for us - but we’re still going.

We’re both at £250 now, so £500 total with £250 bonus.

But it’s been extremely hard work. Some months I wish we didn’t sign up to it - but I keep thinking “aaahh I have to pay into this as otherwise we will miss out on our bonuses” - I guess we don’t actually have to pay in anymore and would still be entitled to the £250 bonus as of today.

P.s. where does it state that if you have £6000 in savings that the government starts to stop benefit entitlements? We currently get less than £5 a month in benefits anyway. Lol
Edited by: "deleted1956543" 12th Sep
deleted195654312th Sep

Where does it state that?


When it changes to universal credit. Look it up in Google, you always learn something the hard way but if you have no savings then don't worry
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deleted1956543
Misslovely5 m ago

When it changes to universal credit. Look it up in Google, you always …When it changes to universal credit. Look it up in Google, you always learn something the hard way but if you have no savings then don't worry


Well you commented on it... so why don’t you look it up?

£6000 is quite a lot of savings. Assuming you saved the full £50 for 4 years, that’s £2400 (+£1200 bonus) = £3600. Still quite a bit lower than the £6000.
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