The British government is encouraging people on lower incomes to sign up to a savings scheme that offers free money. The state Help to Save account allows savers to earn a bonus of 50 pence for every pound saved over four years.
Up to £50 can be paid into the account each month. The bonus is paid based on the amount saved at the end of the second and fourth years. The largest possible total payout over four years is £2,400 (48 months multiplied by £50), and the maximum possible bonus is £1,200.
The scheme is currently aimed at workers receiving Universal Credit. As announced, eligibility will be extended to parents and carers receiving Universal Credit from 2028.
Last week, the debt charity StepChange reported that take-up of the scheme remains far too low. StepChange warned that millions of people could be missing a valuable opportunity to build a financial safety net.
On Monday, at the start of British Savings Week, HM Revenue and Customs used the occasion to promote the scheme. British Savings Week runs until 27 September.
Lucy Rigby, Economic Secretary to the Treasury, said: "Help to Save is a genuinely useful scheme... We want as many eligible people as possible to take it up."
The latest figures show that since September 2018, 656,700 accounts have been opened under the Help to Save scheme. Savers have deposited a total of £676 million. Among those who have opened an account, 94 per cent save the maximum £50 each month.
