More than 656,000 people on a low income have already opened a Help to Save account, with millions more potentially eligible for a government cash boost worth up to £1,200. HM Revenue and Customs (HMRC) is encouraging eligible claimants to take advantage of the scheme, which has paid out more than £300 million in tax-free government bonuses since its launch.
How the scheme works
The Help to Save initiative, first rolled out in September 2018, allows eligible participants claiming Universal Credit or Tax Credits to deposit between £1 and £50 into a dedicated savings account each calendar month. For every £1 deposited, the government adds a 50% tax-free bonus.
Over the four-year scheme, savers depositing the maximum £50 per month will save £2,400 of their own money. The government provides a maximum £1,200 bonus, paid directly into the account holder's bank account. Bonus payments are calculated based on the highest balance achieved during two-year periods and are paid out at the end of the second and fourth years. Participants are permitted to withdraw funds at any time if unexpected expenses arise, though remaining balances determine the total bonus earned.
Expanded eligibility
Following recent rules expanding eligibility to cover working Universal Credit claimants, hundreds of thousands more working families qualify to open an account. Government ministers and personal finance experts have highlighted the scheme as a key tool for building financial resilience.
Economic Secretary to the Treasury Lucy Rigby said: "Help to Save is a really beneficial scheme that offers a 50% government bonus on whatever you are able to save. We want more eligible people to take advantage of it."
Peter Tyler, Director of Personal Banking at UK Finance, said: "Expanding Help to Save and enabling more financial services providers to offer the scheme directly is a positive step towards helping people build financial resilience. The scheme provides eligible customers with a great opportunity and incentives to develop regular savings habits."
How to apply
Opening a Help to Save account takes only a few minutes online or directly through the official HMRC app, where users can manage their deposits via standing order, bank transfer, or debit card. Account eligibility can be checked online via GOV.UK or by logging into the HMRC app.
