DWP benefit claimants could receive £1,200 bonus through little-known scheme

DWP benefit claimants could receive £1,200 bonus through little-known scheme

Brits who claim certain benefits could boost their savings with a £1,200 bonus but many are unaware of the scheme.

Savers on a low income could top up their balance by 50% by paying into the Help to Save government scheme.

The programme is available to many people who claim working tax credits or benefits from the Department of Work and Pensions (DWP).

Account holders are awarded a 50p bonus for every £1 they save over a period of up to four years.

Money saving expert Martin Lewis has promoted the scheme on multiple occasions.

But many still do not know that they are eligible, reports Liverpool Echo.

Savers can withdraw money from their account but their bonus payout is based on the highest amount of money put in.

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An account can be opened even for those who are unable to pay in any money immediately.

Almost six million people claim Universal Credit in the UK with another five million receiving Working Tax Credits.

Under the scheme, savers can squirrel away between £1 and £50 each calendar month.

Regular monthly payments are not compulsory meaning people can top up their savings when they have the funds.

Payments can be made by debit card, standing order or bank transfer.

There is no limit on the number of payments made but the total is capped at £50 per calendar month.

Thousands of Brits are eligible for the savings scheme
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The first 50% bonus is paid after two years and the remaining 50% bonus is paid after four years, each at a maximum of £600.

Money can only be withdrawn from the Help to Save account to a bank account.

Research by the DWP and HMRC has attributed a large part of its success to the MoneySavingExpert.com team.

The study included an online survey completed by 2,743 Help to Save customers between December 2020 and January 2021, as well as 33 follow-on interviews in March.

It said: “The research found that Help to Save customers are predominantly working women with children at home – in line with the general profile of the Tax Credit population.

“A third are single parents. MoneySavingExpert was found to be a key source of awareness of the scheme.”

Customer views on Help to Save are overwhelmingly positive with the majority recommending it to others, the report added.

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