Britain’s low-paid urged to sign up to savings scheme offering cash bonus
Government-backed help to save is aimed at working people on universal credit and pays 50p for every £1 saved over four years Amid claims that millions are missing out, the UK government is encouraging low earners to sign up to a savings scheme that offers free cash. Help to save is a government-backed savings account that lets people earn a bonus of 50p for every £1 they save over four years.…
The UK government is pushing low-income workers receiving universal credit to enroll in a savings scheme called Help to Save. This initiative offers savers a 50-pence bonus for every pound deposited, paid out after two years and again after four years. Eligible individuals can contribute up to £50 each month into the account, with a cumulative maximum contribution of £2,400 over a four-year period, yielding a potential bonus of £1,200.
However, a charity representative, StepChange, has expressed concerns regarding the low uptake of the scheme, suggesting millions may be forgoing a valuable opportunity to establish a financial safety net. As UK Savings Week commenced on Monday, HM Revenue and Customs highlighted the scheme, with Economic Secretary to the Treasury, Lucy Rigby, emphasizing its benefits and urging more eligible individuals to take advantage of it.
Since its inception in September 2018, Help to Save has attracted 656,700 accounts, with a total of £676 million contributed. Remarkably, 94% of these account holders save the maximum amount each month, indicating a strong commitment to building financial stability.
Written by urgent.news from Guardian Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
