The UK government is encouraging low earners to sign up to Help to Save, a savings scheme that offers free cash. The push comes amid claims that millions are missing out on the opportunity.
How the scheme works
Help to Save is a government-backed savings account that lets people earn a bonus of 50p for every £1 they save over four years. Savers can put in up to £50 each month, with the bonus paid at the end of the second and fourth years based on the amount saved.
The maximum contribution over four years is £2,400 (48 x £50), resulting in a maximum bonus of £1,200. The account is aimed at working people receiving universal credit, although eligibility is set to expand to parents and carers on universal credit from 2028.
Take-up remains low
Last week, the debt charity StepChange said take-up of the scheme “remains far too low” and that millions could be missing out on a valuable opportunity to build a financial safety net. On Monday, at the start of UK Savings Week (running until 27 September), HM Revenue and Customs promoted the scheme.
Lucy Rigby, the economic secretary to the Treasury, said: “Help to Save is a really beneficial scheme … We want more eligible people to take advantage of it.”
Latest figures
Latest figures show 656,700 Help to Save accounts have been opened since September 2018, with savers paying in a total of £676m. Of those who have opened an account, 94% save the maximum amount of £50 each month.
