Over 200k low-paid Scots on Universal Credit eligible for £1,200 Help to Save scheme

Over 200,000 low-paid workers in Scotland stand to benefit from a new savings scheme introduced in the UK Budget, with the potential to receive a £1,200 saving bonus. The Help to Save scheme has been reformed to allow any working individual on Universal Credit to qualify for the bonus after four years of saving. Participants can save up to £50 per month and are eligible for a 50% bonus over the four-year period, resulting in a total bonus of up to £1,200.

The changes to the scheme mean that low-paid workers can receive £600 after two years of saving and an additional £600 after four years. Starting from April 2025, the scheme will be open to all working Universal Credit claimants earning at least £1, with bonuses being calculated based on net contributions every six months. This adjustment offers savers more flexibility to access their savings when necessary without missing out on potential bonus opportunities.

The reforms to the Help to Save scheme follow alterations to Universal Credit outlined in the recent UK Budget, which are expected to leave around 110,000 households in Scotland approximately £420 better off. Secretary of State for Scotland, Ian Murray, emphasised that the Budget signifies an end to austerity, with measures such as increasing the minimum wage, enhancing workers’ rights, and ensuring benefits rise in line with the cost of living.

Murray highlighted the importance of promoting financial resilience and encouraging savings among working individuals. He expressed that over 200,000 working Scots are eligible for the £1,200 bonus through the Universal Credit Help to Save scheme, emphasising the government’s commitment to supporting working people in Scotland, investing in public services, and discontinuing the era of austerity.

In conclusion, the reformed Help to Save scheme presents a valuable opportunity for low-paid workers in Scotland to build a financial safety net and benefit from long-term savings. The government’s efforts to enhance financial support and promote saving habits reflect a positive step towards improving economic stability and wellbeing for individuals and households across the country.