People on benefits could be eligible for a £1,200 bonus if they claim Universal Credit or Tax credits.

Many are not aware of the savings scheme designed to boost their savings by 50%.

It comes as tax bills for households will be £3,000 higher since Boris Johnson became Prime Minister as a result of changes announced in the Budget, according to a leading think tank.

READ MORE: 25 key announcements from Rishi Sunak budget that will affect you

The Resolution Foundation (RF) also said the poorest fifth in the country will be around £280 a year worse off as a result of the £20 cut to Universal Credit.

Researchers said three-quarters of households on UC will be worse off as a result of the changes, even with new tapering rules and a rise announced by Chancellor Rishi Sunak.

Wages are also unlikely to rise in real terms this year due to high inflation and will only increase by around 2.4% between the financial crisis in 2008 and 2024, compared to a one third rise recorded in the 16 years prior to 2008.

Nearly 11 million people would be eligible for the savings scheme as they are in receipt of a qualifying benefit, reports the ECHO.

The Government website states: "You can open a Help to Save account if you’re any of the following:

The Help to Save Scheme allows you to set up a government savings account that allows people on low incomes to get a bonus of 50p for every £1 they save over a period of up to four years.

Help to Save is backed by the UK Government so all savings in the scheme are secure.

Users of the scheme can bank between £1 and £50 into their savings every calendar month. For example, if you have saved £50 by January 8 you will not be able to pay in again until February 1.

The most you can pay into your account each calendar month is £50, which is £2,400 over 4 years. The most you can earn from your savings in 4 years is £1,200 in bonus money.

Payments can be made by debit card, standing order or bank transfer.

It is not a necessity to pay in every single month, you can just choose to do so when you can afford to, but if you do not pay in every month then you won't be eligible for the full bonus.

You can withdraw money from the account, but only back to your own bank account.

And there is a catch - the bonus payout that you receive is based on the highest amount of money that you put in.

You receive the bonuses at the end of the second and fourth years. The bonuses amount to 50% of the highest amount that you have saved. These are paid directly into your own bank account.

At the end of the four years that the scheme runs for your savings account will close and all savings will go into your bank account plus the bonuses. You will not be able to reopen it or open another Help to Save account.

You can also close the account at any time but if you close it early you will not receive the bonus and are unable to open a new account.

Research into the scheme, published by the DWP and HMRC, claimed that: "Help to Save customers are predominantly working with children at home - in line with the general profile of the Tax Credit population. A third are single parents."

To set up your account follow this link.

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