Over 200k low-paid Scots on Universal Credit eligible for £1,200 Help to Save scheme
by Andrew Quinn, https://www.dailyrecord.co.uk/authors/andrew-quinn/ · Daily RecordGet the latest Daily Record breaking news on WhatsApp
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Over 200,000 low-paid workers in Scotland are eligible for a £1,200 saving bonus under reforms announced in the UK Budget. The Budget announced reforms to the Help to Save scheme, which will entitle any working person on Universal Credit to a saving bonus of up to £1,200 after four years.
Savers can deposit up to £50 a month and qualify for a 50 per cent bonus over four years. This means low paid workers are entitled up to £1,200 in a savings bonus, with £600 after two years of saving and a further £600 after four.
From April 2025, this scheme will be open to all working UC claimants earning £1 or more and the bonuses will be calculated on net contributions in each six-month period. This gives savers more flexibility to withdraw their savings when needed without losing out on future bonus opportunities.
The reforms follow changes to Universal Credit announced in the UK Budget which would leave an estimated 110,000 households in Scotland on average £420 better off.
Secretary of State for Scotland Ian Murray said: “The UK Budget ended the era of austerity and delivered change by putting more money in people’s pockets.
"Alongside the increase to the minimum wage and delivering the biggest upgrade to workers’ rights for a generation, we will ensure benefits rise in line with the cost of living and change Universal Credit so loan repayments are capped – a move that would help up to an estimated 110,000 households by on average £420 a year.
“We also want to encourage people to build up some financial resilience and save where they can. That’s why over 200,000 working Scots are eligible for a £1,200 bonus through our Universal Credit Help to Save scheme
"The UK Budget protects working people in Scotland, delivers more money than ever before for Scottish public services and means an end to the era of austerity."
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