Hundreds of thousands of families on Universal Credit are set for a significant financial boost after a major government savings scheme was made permanent and its eligibility rules dramatically expanded.
Permanent Lifeline for Low-Income Savers
In a move announced by Chancellor Rachel Reeves during last week's Budget, the Help to Save scheme has been granted permanent status. The programme, which was originally scheduled to end in 2027, will now continue indefinitely, offering long-term security for participants.
HM Revenue and Customs (HMRC) confirmed the update in a social media post, stating: "Help to Save is here to stay – and more families can benefit." The tax authority emphasised that the change means more support for those on low incomes, including people on Universal Credit with caring responsibilities.
Massive Expansion in Eligibility from 2028
The most impactful change is a substantial widening of who can qualify for the scheme. From April 2028, up to 1.5 million additional families are expected to become eligible due to the expanded criteria. This represents a major extension of support, potentially benefiting millions given that Department for Work and Pensions (DWP) figures show approximately 8.3 million people currently receive Universal Credit.
Latest HMRC data reveals the scheme's existing success, with almost half a million people on low incomes having already received more than £220 million in bonus payments. Individual savers have been able to secure bonuses of up to £1,200.
How the Help to Save Scheme Works
Help to Save is a UK Government initiative designed to encourage saving among those with lower earnings. It offers a generous 50% bonus on savings. Participants can deposit between £1 and £50 per month. For every £1 saved, they earn an extra 50p from the government.
The potential maximum bonus is achieved by saving the full £50 each month. Over the scheme's four-year term, this amounts to £2,400 in personal savings, triggering the maximum government bonus of £1,200. This bonus is paid directly into the saver's bank account at the end of the second and fourth years.
Key features of the scheme include:
- Deposits can be made via debit card, standing order, or bank transfer.
- Withdrawals are permitted at any time, though they may affect the bonus calculation.
- One in five customers have opened an account using the convenient HMRC app, which allows users to track deposits and view their bonus payments.
This permanent commitment to Help to Save signals a sustained government effort to improve financial resilience among some of the most vulnerable households in the country.
