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 changes to the Help to Save scheme, entitling 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% bonus over four years. This means low paid workers can receive up to £1,200 in a savings bonus, with £600 after two years of saving and an additional £600 after four years.
Starting from April 2025, this scheme will be open to all working Universal Credit claimants earning £1 or more. The bonuses will be calculated based on net contributions in each six-month period. This provides savers with flexibility to withdraw their savings when needed without missing out on future bonus opportunities. These reforms come alongside changes to Universal Credit announced in the UK Budget, benefitting an estimated 110,000 households in Scotland who are expected to be around £420 better off.
Secretary of State for Scotland Ian Murray highlighted that the UK Budget aims to end austerity and increase disposable income for individuals. He emphasized that alongside the rise in the minimum wage and enhancements to workers’ rights, benefits will increase in line with the cost of living. Additionally, changes to Universal Credit will include capping loan repayments, benefiting approximately 110,000 households by an average of £420 annually.
Murray also mentioned the importance of promoting financial resilience and savings among the working population. The Universal Credit Help to Save scheme offers over 200,000 working Scots the opportunity to receive a £1,200 bonus. He stated that the UK Budget is designed to support working people in Scotland, allocate more funding to Scottish public services, and signal the end of the austerity era.