Hundreds of thousands of people receiving Universal Credit are set for a significant financial uplift, with HM Revenue and Customs (HMRC) preparing to pay out bonuses that could reach £1,200 per saver.
A Permanent Lifeline for Savers
In a major policy shift announced by Chancellor Rachel Reeves in the Autumn Budget, the Help to Save scheme has been granted permanent status. It was originally scheduled to close in 2027. The move means more families on Universal Credit will become eligible to open an account, securing a valuable savings incentive for the long term.
Recent official data reveals the scheme's substantial reach. Between its launch in September 2018 and April 2025, a total of 575,200 customers opened a Help to Save account. Collectively, they have paid in £588.2 million to build their financial resilience.
How the Bonus Scheme Works
The government-backed scheme is designed to encourage regular saving among those on lower incomes. Participants can deposit up to £50 per month into their dedicated account. HMRC then adds a generous 50% bonus on top of the amount saved.
If a saver manages to contribute the maximum £50 every month for the full four-year term, they will save a total of £2,400 and receive the maximum £1,200 bonus from the Treasury. The bonus is not paid annually; instead, it is deposited directly into the saver's bank account at the end of the second and fourth years.
Lucy Rigby, the Economic Secretary to the Treasury, stated: "The Government's Help to Save scheme has boosted the savings of over half a million people across the country to the tune of £220 million. We're committed to helping families build financial resilience and putting more money in the pockets of working people."
Flexibility and Key Considerations
The scheme offers notable flexibility. Savers can make deposits via debit card, standing order, or bank transfer. Withdrawals from the account are permitted at any time without penalty, providing access to funds when needed.
However, it is crucial for account holders to understand that making a withdrawal can impact their bonus calculation. The bonus is based on the highest balance achieved between bonus periods, so reducing the account balance may lower the eventual bonus payment.
With around 7.5 million people currently claiming Universal Credit, the permanent extension of Help to Save represents a sustained opportunity for a significant portion of claimants to build a savings safety net with substantial government support.
