HSTM02300 - Eligibility: benefit entitlement conditions

To be eligible for the Help-to-Save scheme one of the benefit entitlement conditions need to be met on each of the two eligibility reference dates.

The first eligibility reference date is the date on which the application for the account is made and the second eligibility reference date is the date on which the application is accepted.

The individual must meet one of the two benefit entitlement conditions. A benefit entitlement condition is to be treated as met on any day if it would have been met but for an error or delay on the part of HMRC.

In exceptional circumstances where the individual is eligible for Tax Credits at the first reference point, and for Universal Credits at the second reference point, they would meet the benefit entitlement conditions.

Individuals in a household who are eligible through a joint claim can each open a Help to Save account.

1. First benefit entitlement condition: Working Tax Credit or Child Tax Credit

In order to meet the first benefit entitlement condition, one of the three following conditions must be met:

Condition 1

The individual, whether alone or with another person, has a current, valid award of working tax credit (not at the nil rate).

Condition 2

The individual, whether alone, or with another person, has a current, valid award of working tax credit at the nil rate and a current, valid award of child tax credit at a rate other than nil.

Condition 3

The individual, whether alone, or with another person, is receiving interim or provisional payments of tax credits during the tax credit renewal period.

A current award includes revisions of the award (otherwise than to revoke the reward).

The terms “working tax credit”, “child tax credit” and “tax credit” have the meanings given by the Tax Credits Act 2002.

2. Second Benefit entitlement condition: Universal Credit

a. The individual, either as a single claimant or joint claimant, has a current and valid claim to universal credit (not a nil award), and

b. Has earned income in the assessment period immediately preceding the first eligibility reference date equal to or greater than the equivalent of 16 hours per week at the National Living Wage rate.

To be eligible as part of a joint claim the combined income of the two individual claimants that make up the joint claim must be equal or greater than the equivalent of 16 hours per week at the National Living Wage rate in the assessment period immediately preceding the first eligibility reference date.

Where applicable, the individual’s Universal Credit minimum income floor calculation will be used to determine the individual’s earned income in the assessment period immediately preceding the first eligibility reference date for the purposes of the second benefit entitlement condition.

An assessment period is a period of one month beginning with the first date of entitlement to Universal Credit and each subsequent period of one month during which entitlement to Universal Credit subsists.