Universal Credit claimants who work are being reminded they may qualify for a government-backed savings scheme that can pay up to £1,200 in bonuses. The Help to Save account, administered by HM Revenue & Customs (HMRC), offers a 50p bonus for every £1 saved over four years.
Around three million working Universal Credit claimants are now eligible, with the scheme extended until April 2027. By the end of April 2025, approximately 575,200 accounts had been opened, and 7,800 were opened in that month alone. According to HMRC, 94% of users deposit the maximum £50 each month.
To qualify, claimants must have take-home pay of at least £1 in their last monthly assessment period. They can save between £1 and £50 per calendar month, with no requirement to save every month. At the end of years two and four, bonuses are paid: 50% of the highest balance at year two, and 50% of any increase in the highest balance at year four. The maximum total bonus over four years is £1,200.
Lucy Rigby, economic secretary to the Treasury, said the scheme has boosted savings for over half a million people, totalling £220 million. Myrtle Lloyd, HMRC's Chief Customer Officer, urged eligible households to open an account via GOV.UK or the HMRC app, noting that the process takes only a few minutes.
Once opened, the account lasts four years and cannot be reopened. Users may withdraw money at any time, but closing the account early forfeits future bonuses. Savings and bonuses are tax-free. Even if a claimant stops receiving Universal Credit, they can continue using the account.
