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Money saving expert Martin Lewis has revealed how people can add an extra 50% to their savings by using a government scheme.
The TV presenter explained the benefits of the Help to Save scheme, which pays account holders a bonus on the amount they’ve saved to a maximum of £1,200 over four years.
To qualify for the scheme, you must be a UK resident receiving universal credit with an employment income of at least £722.45, or receiving a working tax credit or be entitled to a working tax credit and receiving child tax credit.
“If you know anyone on Universal Credit especially please do share this with them. It’s an unbeatable form of savings, that can add serious cash with no risk,” Mr Lewis wrote on X, formerly known as Twitter.
The scheme allows people to save up to £50 per month over two years, and then receive a 50% bonus on the highest amount that was in the account over that period.
Mr Lewis explained on ITVX’s The Martin Lewis Money Show Live: “You put £50 in a month for a year, you’ve got £600. You have a nightmare – because this is all about building financial resilience and getting people some savings – your fridge is broken, you need it for your kids.
“You spend your £600 you can’t afford to put any more in. At the end of the two years, the highest amount you had in was £600, you get 50% of that which is £300, so you get £300.”
Once you receive your 50% bonus, you can then decide to stop saving or keep saving it for another two years.
One woman took to social media to share her success with the scheme. She wrote on X: “My four years are up in April and it’s been a fantastic scheme. I used the first bonus for a holiday for me and the kids but didn’t touch the actual savings. Looking forward to April when my ‘hard work’ pays off.”
You can apply to open a Help to Save account through your Government Gateway account, or by calling the HMRC helpline.
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