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

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.

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:

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.

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.

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)'