The UK Government has extended the Help to Save scheme, enabling a wider group of households on Universal Credit to qualify for a savings bonus of up to £1,200 over a four-year period. Operated by HMRC, the programme provides a 50% bonus on amounts deposited into the account, up to a set monthly limit, and is designed to support those on low incomes in building financial reserves.
According to information reported by the Manchester Evening News, the scheme’s expansion follows a rise in account openings and is expected to make the benefit available to hundreds of thousands of additional working claimants across the country.
Wider Eligibility for Working Claimants
Previously, the scheme was available only to those receiving Tax Credits or Universal Credit claimants working at least 16 hours a week at the National Living Wage. In April, eligibility was broadened so that anyone who works and also claims Universal Credit can open an account. The change is designed to reach hundreds of thousands of additional households who could benefit from extra savings support.
Economic Secretary to the Treasury Emma Reynolds said: “Security for working people is at the heart of our Plan for Change. We want more people to have a bit in the kitty for a rainy day, which is why we are giving hundreds of thousands more working families on tight budgets access to this support.”
How the Scheme Works
A Help to Save account offers a 50% bonus on savings, meaning that for every £2 deposited, HMRC pays £1. Savers can deposit between £1 and £50 a month, with a maximum of £25 given back each month in bonus payments. Over four years, depositing the monthly maximum could lead to a total bonus of £1,200.
Participants are not required to save every month and can make multiple deposits within a month, provided they do not exceed £50 in total for that month. Bonuses are calculated and paid in two stages:
- After the first two years, savers receive 50% of the highest balance achieved during that period.
- After four years, they receive another 50% bonus based on the difference between the highest balance in years three and four and the highest balance in the first two years. If the highest balance does not increase in the final period, no second bonus is paid.
Strong Uptake Since Launch
Since the scheme began in 2018, HMRC has paid out millions of pounds in bonuses to more than 500,000 people. In 2024 alone, nearly 18,500 accounts were opened through the HMRC app. This reflects growing interest in the scheme as more people become aware of its benefits and new eligibility rules make it accessible to a wider group of Universal Credit claimants.
Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “Thousands of customers have already benefitted from Help to Save and many more are now eligible to get a great return of 50% on top of their savings, no matter how little you can save each month. Go online or via the HMRC app to find out more and apply today.”
Application Process
Eligible savers can apply online or through the HMRC app. The account runs for a maximum of four years, after which deposits are no longer accepted. Bonus payments are transferred directly into the saver’s bank account rather than into the Help to Save account itself.
The scheme is intended to help Universal Credit claimants and other eligible households build a modest financial cushion, encouraging regular saving habits while providing significant government-backed returns. By combining flexibility in deposits with a guaranteed bonus structure, HMRC hopes to make the scheme attractive even to those who can only save small amounts each month.
