MSE News: Help to Save scheme to offer £1,200 bonus to low-paid workers

Jhoney_2

Flobberchops wrote: »

What a malarkey. It's not a *bad* scheme but for the average skint minimum wage worker the four years from today they'll have to wait to see their bonus materialise (hopefully, if the scheme is still in place, if the bureaucracy doesn't hold up or reject their claim, etc...) may as well be a lifetime.

Why not just simplify things by offering a Help to Save regular savings account to anybody receiving Universal Credit, deposits capped at £50 a month, offering an AER of 50%? Or simply raise minimum wage by an equivalent figure?

Because there is no way to monitor how it is spent (for future reductions to benefits/cuts) and because GO knows that it will not be saved just like the rest of the money people recieve but choose currently not to save.

It's not a very well thought out idea, although I am actually pleased they are trying to do something!

Lack of support for the young, sick and disabled people of this country is appalling.

Over62

If a person on benefits can afford to save £50 per month, are we not paying them too much in benefits?

Malthusian

Over62 wrote: »

If a person on benefits can afford to save £50 per month, are we not paying them too much in benefits?

A fair question but the answer is no, as people on benefits have one-off expenditures (boiler breaking down etc) to pay for just like the rest of us. There is nothing wrong with people on benefits having rainy day savings, indeed they probably should. It saves them having to apply for emergency loans or go to Wonga.

Of course, this scheme isn't much use for rainy day savings, as if that's what you're saving for you would expect a "rainy day" to arrive and the savings to be spent before you became eligible to claim your government bonus. But it's no surprise that it doesn't make sense as it's a stupid reheated New Labour idea.

Garethgrew

What interest rate does it work out at? Can you get any interest on the £50month as well as the bonus after 4 years?

50Twuncle

diamonds wrote: »

It seems reported any government provided assistance will qualify, although not HB or CTX which may be paid by the DWP but administered by councils on their behalf.

Sorry for the delay in responding
Could you please elaborate on this answer ?
Are you saying that, for example DLA counts towards income ?
If so - how does a claimant get this added benefit ?
I work for 10 hours per week on virtually minimum pay to top up my works disability pension and DLA - So any added income would be welcome

darkovo

This is now live:
https://www.tax.service.gov.uk/help-to-save/about-help-to-save

Not sure if there's a newer thread on MSE, I couldn't find one!

Poppycat1

I have just opened one of these. Really easy to do via Gateway. Sounds great.

£50 x 12 = £600 x 4 = £2400
Plus £1200 bonus at end.
Total £3,600

Petriix

I've just opened one. There was a link at the bottom of the page after renewing my tax credits. The interest works out at just under 19% PA (20.6% EAR). That makes it significantly better than overpaying the mortgage and marginally better than the rate on my credit card.

It looks like you can withdraw the money at any time, but you would ultimately be reducing the bonus you would get in the end. Ideally I'll find a way of paying in the full amount each month for the whole 4 years; but with the safety of being able to access the money in an emergency or just stop paying in if necessary. Looks like there is no risk to this so it's a no-brainer.

I need to find out if it's one account per family or if both adults can get one each.

Dandytf

I'm due to make 3rd payment tomorrow via standing order.
Hopefully across 2-4 yrs gain max savings allowance.
I'ts not the 'bonus' that motivates me more that this type of savings account could have been made available years ago.
I'm not at the stage where I have forgot about the monthly 'debit' though I get a bit of encouragement if I log once every few weeks.
This type of savings account shoiuld be heavily advertised on t.v. And media sources etc to allow as much qualified people to open and account if required.
I'ts form Gov it's online -no searching for docs etc to visit a bank branch required.
Nice bit of competition for mainstream banks that entices people to save.
Good luck mser's -let's continue to use this thread to log progrsss, I'll start maybe next few days when my latest debit is 'saved'
This saving is a new experience for me which I'm enjoying

Dandytf

That was a while for 2nd June £50 deposit via S.O. To show up from rbs.
h2s online only displayed this deposit today 5th June.
Continue enjoy saving mser's whilst I learn to continue hopefully each month over next few years.