According to an announcement made today by HM Revenue and Customs, over half a million additional savers in the UK are set to receive government bonuses of up to £25 per month through the help to save initiative.
The government’s help to save scheme is now accessible to an additional 550,000 individuals to assist with living expenses.
Help to save is part of the government’s strategy to stimulate economic growth and aims to enhance savings and alleviate the impact of increasing living costs.
Help to save is now accessible to all individuals who are employed and receiving universal credit, potentially benefiting an additional 550,000 people.
Myrtle Lloyd, HMRC’s Director General for Customer Services, said:
“Thousands of customers have already benefitted from Help to Save and many more are now eligible to get a great return of 50% on top of their savings, no matter how little you can save each month. Go online or via the HMRC app to find out more and apply today.”
Launched in 2018 the help to save scheme has paid out to more than half a million already with nearly 18,500 people opening an account via the HMRC app in 2024.
Help to save has been extended by the government to April 2027 instead of ending in April 2025 as initially expected.
Michelle Highman, Chief Executive of The Money Charity, said:
“We are really pleased to see the Help to Save scheme extended and made available to more people. It’s a brilliant way for people to start to save and to build their financial resilience and futures. Saving even just a little each month will help, and the added 50% bonus payment from the Government means that if you are eligible, then it’s a great place to boost your savings.”
Who qualifies for help to save and how do I sign up?
To qualify for the help to save scheme you need to be working with a take home pay of £1 or more (in the last monthly period), claiming universal credit and be resident in the UK.
If you live outside the UK you can qualify if either you or your spouse (or civil partner) are a member of the British armed forces or a crown servant.
Creating a help to save account online can take under 5 minutes and should be a straightforward process via GOV.UK or the HMRC app.
For those unable to use the online options a phone service is available to help you sign up.
Once you have set everything up you have the ability to check your account details, view their balance and bonus information, and deposit funds through a debit card, bank transfer, or standing order.
You can withdraw funds from your help to save account at any point, though doing so could impact the 50% bonus payouts.
How much us help to save worth to universal credit claimants?
The maximum you can pay in each month is £50 with Individuals who contribute the highest amount of £2,400 across a four-year period earning a bonus of £1,200.
This equates to a 50% yield on savings, which is considerably more than typical interest rates given by standard savings accounts.
Government figures show that 93% of savers are contributing the full £50 each month into their help to save accounts.
The bonus payments are calculated based on the largest sum saved during the timeframe and are made at the conclusion of the second year and at the end of the final year.
Criteria for help to save bonus payments:
- Following the initial two years savers will receive their first bonus provided they have been actively saving in their account. This bonus will amount to 50% of the peak balance achieved.
- After four years, if customers persist with their saving habits, they will be awarded a final bonus.
This bonus will equal 50% of the difference between two figures:
the highest balance saved during the first two years (years 1 and 2)
the highest balance saved in the subsequent two years (years 3 and 4)
- If there is no increase in their highest balance a final bonus will not be paid.
Help to save support
For those unable to use the online service or requiring help after account setup, a phone service is available during the week.
The helpline can be reached at 0300 322 7093, Monday to Friday, between 10am and 6pm.
