Help to Save - does the interest count as income and affect your benefits

Hi All,

I have a help to save account of Ron HMRC, the bonus is amazing. However I’m now thinking it’s too good to be true. We get the bonus based on the money we have saved, but that month we receive it I wonder if UC will be reduced.

If that’s the case, it is totally pointless.

Please does anyone know?

Comments

  • HillStreetBlues
    HillStreetBlues Posts: 3,098
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    edited 6 February at 12:12PM
    EmmaUk01 said:
    Hi All,

    I have a help to save account of Ron HMRC, the bonus is amazing. However I’m now thinking it’s too good to be true. We get the bonus based on the money we have saved, but that month we receive it I wonder if UC will be reduced.

    If that’s the case, it is totally pointless.

    Please does anyone know?
    Help-to-Save bonus isn't classed as income so no deduction, but the balance is classed as capital for UC  If overall capital is over £6k then there will be a deduction for that.
    Let's Be Careful Out There
  • Tucosalamanca
    Tucosalamanca Posts: 446
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    Spend the capital or pay off debt is probably the best plan.
    I've always assumed that this was an intended consequence of the (very) generous scheme.
  • Jyana
    Jyana Posts: 664
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    If you have been putting any of the Cost of Living Payments from the last couple of years into the savings then these of course won't count towards the £6k limit as they are permanently disregarded.
  • EmmaUk01 said:
    Hi All,

    I have a help to save account of Ron HMRC, the bonus is amazing. However I’m now thinking it’s too good to be true. We get the bonus based on the money we have saved, but that month we receive it I wonder if UC will be reduced.

    If that’s the case, it is totally pointless.

    Please does anyone know?
    Help-to-Save bonus isn't classed as income so no deduction, but the balance is classed as capital for UC  If overall capital is over £6k then there will be a deduction for that.
    where is this information? I’d like to save it in case I get questioned.
  • HillStreetBlues
    HillStreetBlues Posts: 3,098
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    EmmaUk01 said:
    EmmaUk01 said:
    Hi All,

    I have a help to save account of Ron HMRC, the bonus is amazing. However I’m now thinking it’s too good to be true. We get the bonus based on the money we have saved, but that month we receive it I wonder if UC will be reduced.

    If that’s the case, it is totally pointless.

    Please does anyone know?
    Help-to-Save bonus isn't classed as income so no deduction, but the balance is classed as capital for UC  If overall capital is over £6k then there will be a deduction for that.
    where is this information? I’d like to save it in case I get questioned.
    https://www.gov.uk/get-help-savings-low-income/how-it-will-affect-your-benefits

    Universal Credit

    If you or your partner have £6,000 or less in personal savings this will not affect how much Universal Credit you get. This includes any savings in your Help to Save account.

    Your Help to Save bonuses will not affect your Universal Credit payments

    Let's Be Careful Out There
  • kaMelo
    kaMelo Posts: 2,288
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    EmmaUk01 said:
    EmmaUk01 said:
    Hi All,

    I have a help to save account of Ron HMRC, the bonus is amazing. However I’m now thinking it’s too good to be true. We get the bonus based on the money we have saved, but that month we receive it I wonder if UC will be reduced.

    If that’s the case, it is totally pointless.

    Please does anyone know?
    Help-to-Save bonus isn't classed as income so no deduction, but the balance is classed as capital for UC  If overall capital is over £6k then there will be a deduction for that.
    where is this information? I’d like to save it in case I get questioned.
    https://www.gov.uk/get-help-savings-low-income/how-it-will-affect-your-benefits

    Universal Credit

    If you or your partner have £6,000 or less in personal savings this will not affect how much Universal Credit you get. This includes any savings in your Help to Save account.

    Your Help to Save bonuses will not affect your Universal Credit payments

    The last line "Your Help to Save bonuses will not affect your Universal Credit payments"
    Are the bonuses disregarded indefinitely? 
  • HillStreetBlues
    HillStreetBlues Posts: 3,098
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    kaMelo said:
    EmmaUk01 said:
    EmmaUk01 said:
    Hi All,

    I have a help to save account of Ron HMRC, the bonus is amazing. However I’m now thinking it’s too good to be true. We get the bonus based on the money we have saved, but that month we receive it I wonder if UC will be reduced.

    If that’s the case, it is totally pointless.

    Please does anyone know?
    Help-to-Save bonus isn't classed as income so no deduction, but the balance is classed as capital for UC  If overall capital is over £6k then there will be a deduction for that.
    where is this information? I’d like to save it in case I get questioned.
    https://www.gov.uk/get-help-savings-low-income/how-it-will-affect-your-benefits

    Universal Credit

    If you or your partner have £6,000 or less in personal savings this will not affect how much Universal Credit you get. This includes any savings in your Help to Save account.

    Your Help to Save bonuses will not affect your Universal Credit payments

    The last line "Your Help to Save bonuses will not affect your Universal Credit payments"
    Are the bonuses disregarded indefinitely? 
    It's badly worded.(certainly not the first time on a Gov site)
    It should be be saying "Your Help to Save bonuses will not affect your Universal Credit payments, unless 1st paragraph applies."

    It must be done to make it clear that the bonus isn't income so won't be deducted from UC under income rules. But fails to explain that it's capital and the usual capital rules apply.  So there can be a deduction under capital rules. There is no disregard for the capital.

    Let's Be Careful Out There
  • kaMelo
    kaMelo Posts: 2,288
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    Thanks, I agree it's badly worded.
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