Help to Save, the government scheme designed to support working people on low incomes to build their savings, which has been delayed from its original start-date, is to launch officially in October
The scheme was originally announced at the Budget in March 2016 and was expected to be available from the beginning of the tax year in April 2018.
However, the Chancellor’s Spring Statement confirmed the roll out had been delayed to provide ‘the best customer experience possible’.
HMRC has now confirmed that, following a trial that started in January 2018, Help to Save will be rolling out in stages and will be available to all those eligible from October.
The scheme, administered by HMRC, will be open to UK residents who are entitled to working tax credit and receiving working tax credit or child tax credit payments, and those claiming universal credit who have a household or individual income of at least £542.88 for their last monthly assessment period.
People living overseas who meet either of these eligibility conditions can apply for an account if they, or their spouse or civil partner, are a Crown servant or a member of the British armed forces.
Over four years, regular savers can deposit up to £50 a month and could receive up to £1,200 in tax-free bonuses. The scheme will be open for five years.
The scheme, which was championed by former Prime Minister David Cameron, is intended to encourage ‘rainy day’ savings, with official estimates suggesting close to half of adults in the UK have as little as £500 set aside for emergencies. The Treasury has indicated the likely cost of 'Help to Save' will reach £85m in 2022-23.
The Help to Save scheme is here.
Report by Pat Sweet
