A new scheme will be launched in 2018, by the Government to incentivise those on low incomes to build up their savings.
The Help to Save Schemewill be available to employed people who receive Working Tax Credits, and to those who receive Universal Credit with a household income equal to a minimum of 16 hours per week at the national living wage (currently £120 a week).
The saving scheme will work as follows:
- Those eligible can save up to £50 per month.
- After two years, savers will receive a 50% bonus based on the balance achieved.
- Savers can choose to continue the scheme for a further two years to receive a further 50% bonus on the additional savings amount.
- At the end of two years, savers will get a 50% bonus based on the highest balance achieved. Savers can then carry on saving for another two years to get another 50% bonus on their additional savings.
- Over a four-year period, the maximum savings amount of £2400 will receive a £1200 bonus.
- Savers can opt to withdraw funds at any time, but this will impact the final bonus payment.
- Savers will be able to access and manage the account online through gov.uk.
We will update you once further details are available, however should you have any queries about the scheme, please contact us.