HMRC Calls on Universal Credit Claimants to Verify Eligibility for £1,200 Savings Boost
HM Revenue and Customs (HMRC) has issued a pressing call to UK households, urging them to check if they qualify for a significant cash boost through a specialised savings account. The Help to Save scheme is designed to provide financial support to individuals receiving Universal Credit, offering a substantial incentive to save money over a four-year period.
How the Help to Save Scheme Works
The Help to Save account is a government-backed initiative that rewards savers with a 50p bonus for every £1 they deposit. This unique structure allows participants to potentially earn up to £1,200 in bonus payments over the full four-year term. Savers have the flexibility to make deposits as frequently as they wish, with a maximum monthly contribution limit of £50.
Over the course of four years, the maximum total deposit allowed is £2,400, which could yield the full £1,200 bonus if savings are maximised. The scheme operates with two tax-free bonus payments, distributed at the end of the second and fourth years, based on the account holder's savings behaviour.
Bonus Payment Structure Explained
HMRC has provided detailed clarification on how the bonus payments are calculated. At the end of the initial two-year period, savers receive a first bonus equivalent to 50% of the highest balance they have achieved in their account during that time.
The final bonus, paid after four years, is determined by comparing the highest balance from the first two years with the highest balance from the final two years. This bonus amounts to 50% of the difference between these two figures. It is important to note that if the highest balance does not increase between these periods, no final bonus will be awarded.
HMRC's Direct Appeal to Potential Applicants
In a recent social media post on X, formerly known as Twitter, HMRC directly addressed Universal Credit claimants, stating: "Do you claim Universal Credit? If so, you may be eligible for a savings boost. With Help to Save, for every £1 you save, the Government adds 50p. That’s up to £1,200 in bonus payments over four years."
The revenue authority emphasised the importance of checking eligibility and applying through the official HMRC app. All bonus payments are deposited directly into the saver's personal bank account, rather than being added to the Help to Save account itself.
This initiative represents a significant opportunity for eligible households to enhance their financial resilience while receiving government support to build their savings.
