'Help to Save' Government Saving's scheme - Pros and Cons

Hello

I was just renewing my Tax Credits and was guided to a page about saving in government ‘Help to Save’ account. If I open and put money in, without any withdrawals, then they will give me a bonus of up to £600 for the first two years and £1,200 for four years.

Sounds good. However, if I do become even more frugal and save money, will the government use my savings to deduct / reduce future Tax Credits?

There is no information on this on their website.

Can you find out anything more?

Best wishes

Comments

  • Neil_Jones
    Neil_Jones Posts: 9,513 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Working Tax Credits is purely on income, savings have nothing to do with it.

    For other benefits that are means-tested such as income based Jobseekers then yes it will apply and be used as part of your savings capital which IIRC for JSA, knocks £1 off your payment of JSA for every £250 above £6k you have until £16k when you get nothing at all.
  • TheShape
    TheShape Posts: 1,854 Forumite
    Ninth Anniversary 1,000 Posts Name Dropper Combo Breaker
    deersmith4 wrote: »
    Sounds good. However, if I do become even more frugal and save money, will the government use my savings to deduct / reduce future Tax Credits?

    They won't reduce your tax credits (working or child). Be aware though that if you move onto Universal Credit any Capital you have in excess of £6000 will reduce your Universal Credit payment. If you're part of a managed migration from tax credits to UC you'll get transitional protection for 12 months. If a change of circumstances stops your tax credit claim and you later claim UC the capital rules will apply from day 1.
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 349.8K Banking & Borrowing
  • 252.6K Reduce Debt & Boost Income
  • 453K Spending & Discounts
  • 242.7K Work, Benefits & Business
  • 619.5K Mortgages, Homes & Bills
  • 176.4K Life & Family
  • 255.7K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 15.1K Coronavirus Support Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.