Help to Save
in Savings & investments
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You withdraw £600. The maximum you can pay back in is £1200 taking the end balance to £1800.
So your balance at the end is £1800 which is £600 more than the year 2 end balance.
Hence bonus is £300.
For example, if you'd managed to save £1,000, but needed to withdraw £200 before the end of the two years, despite having a balance of £800 you'd still get a £500 bonus, as that's 50% of your highest balance, which was £1,000.
Let's assume you managed to save £500 in years one and two – you'd get a £250 bonus paid out at the end of the second year. But you needed to use the £500 for car repairs, so withdrew it all.
Then, in years three and four, you found you could start saving again and managed to save £750. In this case, you'd get a £125 bonus (this is worked out as £750 - £500 = £250, the bonus being 50% of the difference between your two highest balances).
Your highest balance at the end of year 4 is £1800 (because of the extra £600 withdrawal, which is not the bonus)
Difference is £600 so the bonus is £300.
I don't understand why you don't understand what I am explaining.
I was counting each 2 year period as 2 separate entities! Got it now 🤦♀️
"claiming Universal Credit and your household earned £604.56 or more from paid work in your last monthly assessment period"
If this is the case for you then one assessment period where you meet the criteria then you could apply for an account.
I advised a family friend who is currently on maternity leave, and on UC, to look at the Help to Save Scheme but "the computer said No" because her maternity pay is only £563 per month.
I have confirmed with her that her maternity pay is as per current legislation: 90% of average pay. If she were working instead of on maternity leave, her pay would be in the region of £628 pm (£145pw) and she would be eligible for the scheme. I'm not entirely sure that this represents a form of discrimination but I do think it is a very unfortunate outcome for my friend, and one that the government ought to, and could easily address.
This is my first post on MSE - will the experts take this up with the govt?
Maybe when your friend starts working again she'll earn enough to be entitled to open the help to save account. In the meantime, there are a couple of savings accounts which pay some interest if she can pay £50 a month into them. And she could potentially 'earn' £600 in two years from taking advantage of current account switching offers.
Ive noticed MSE often refer to their contacts at HM treasury and how they can quickly check apparent anomalies with them; this is what I was hoping for but of course I can take this up myself.