The UK government’s Help to Save scheme is offering eligible individuals a chance to boost their savings by up to £1,200, but only if they meet strict criteria. Designed to support low-income households, the initiative rewards those on Universal Credit for regularly saving into a government-backed account.
Since its launch in 2018, the scheme has provided a unique opportunity for individuals to grow their savings while receiving government bonuses. With contributions as small as £1 a month, participants could see their savings topped up by 50p for every pound they save. This article explores how the scheme works and who qualifies for the financial boost.
Help to Save: A Rewarding Savings Scheme
The Help to Save initiative was introduced to encourage people who are receiving Universal Credit or Working Tax Credits to start saving. Those who qualify can receive bonuses from the government based on the amount they save. For every £1 put into a designated savings account, the government adds 50p. The total bonus can reach up to £1,200 over four years, provided the savings goals are met.
According to a statement from HMRC, individuals can contribute up to £50 per month into their accounts, leading to a maximum savings of £2,400 over four years. However, it is the 50% bonus that makes the scheme particularly attractive. This means that those who save the full £50 each month for the duration of the scheme will ultimately earn a total of £3,600 in their account, including the £1,200 bonus.
The bonus structure is split into two stages. After two years of saving, participants are eligible for the first bonus, which is calculated at 50% of the highest amount saved during that period. After four years, they will receive a final bonus based on the difference between their highest balance and their final balance, provided they have continued saving. If no increase is recorded, the final bonus is not awarded.
Who Is Eligible for the Scheme?
According to HMRC, applicants must be receiving Universal Credit and have earned at least £1 in take-home pay during their last monthly assessment period. Additionally, they must reside in the UK. This means that the scheme is tailored to those facing financial difficulties and who may find it challenging to save without external support.
Eligible individuals can apply for a Help to Save account through the official GOV.UK website. The application process requires a few details, including the applicant’s National Insurance number, UK bank account information, and identification documents such as a passport or driving licence. For those who claim Universal Credit as a couple, both partners can apply for separate accounts.
While the scheme is set to end in April 2025, there are indications that it will be extended and made permanent in the future. If that happens, the eligibility criteria may also be expanded to include more individuals, further strengthening its potential benefits for low-income households. The Help to Save initiative continues to provide a significant financial boost to individuals who need it most. With the support of government bonuses, low-income families can build a savings cushion, helping them weather financial challenges in the years ahead.
