Thousands on Universal Credit can get £300 free cash, here's how to get yours

Thousands on Universal Credit can get £300 free cash, here's how to get yours
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Thousands on Universal Credit can get £300 free cash, here's how to get yours
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People on Universal Credit can get this free cash bonus from the government if they open a specific savings account.

Universal Credit claimants and people on a Working Tax Credit could receive a £300 cash boost if they open a Help to Save bank account this year. The payment is awarded by the government and is designed to encourage saving by offering a tax-free bonus of 50p on every £1 saved.

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Money Saving Expert, Martin Lewis recommended the initiative on his show and says it is quick and easy to sign up for the account, as per The Sun:

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It is the best possible savings account there is - nothing like it.

Help to Save

The Help to Save account rewards people on a Working Tax Credit or receiving Universal Credit by giving a bonus of 50% on money saved over 4 years. Account holders can save between £1 and £50 each month and you do not need to put money in every month.

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The bonus consists of two payments; one after two years and the other after four years. The first bonus will be 50% of the highest balance you have saved.

After four years, the second bonus will be 50% of the difference between the two amounts:

  • the highest balance saved in the first 2 years (years 1 and 2)
  • the highest balance saved in the last 2 years (years 3 and 4)

If you put in the maximum of £50 each month, you will save £2,400 over four years. In this case you would receive a £1,200 bonus from the government in total, which would work out at £300 a year, as per gov.uk.

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How to apply

It is possible to apply for a Help to Save account if you’re receiving:

  • Working Tax Credit
  • Child Tax Credit – and you’re entitled to Working Tax Credit
  • Universal Credit and you (with your partner if it’s a joint claim) had take-home pay of £658.64 or more in your last monthly assessment period

If you receive benefits as a couple, you and your partner can apply for individual Help to Save accounts but you will need to do so separately.

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To apply you will also need to be living in the UK. If you live overseas, you can still apply for an account if you’re either a:

  • Crown servant or their spouse or civil partner
  • member of the British armed forces or their spouse or civil partner

To apply you will need a Government Gateway user ID and password. If you do not have a user ID, you can simply create one when you apply. You’ll be asked to provide your UK bank details when applying.

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Sources used:

- The Sun 'Martin Lewis reveals how Brits on Universal Credit can get £300 FREE cash with specific savings account… here’s how'

- Gov.uk 'Get help with savings if you’re on a low income (Help to Save)'

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