In a major push to encourage financial stability among low-income earners, HM Revenue & Customs (HMRC) has expanded eligibility for the Help to Save scheme, potentially benefiting 550,000 more people across the UK. This initiative offers a generous savings incentive—a £1,200 government bonus over four years—for those who qualify and choose to save regularly.
What Is the Help to Save Scheme?
Launched in 2018, the Help to Save program is designed to help working individuals on low incomes build up their savings through a government-backed incentive. Under the scheme, eligible participants receive a 50% bonus on the amount they save, up to £50 per month. Over four years, that adds up to a maximum deposit of £2,400, and a tax-free bonus of £1,200.
The scheme was originally set to end in April 2025, but has now been extended to April 2027 to allow more people to participate and benefit.
🔗 More on the Help to Save scheme from GOV.UK
Who’s Now Eligible?
Previously, the scheme was limited to people receiving Working Tax Credit or Universal Credit while working at least 16 hours a week. The latest changes mean anyone working and receiving Universal Credit is now eligible—regardless of the number of hours worked.
This expansion is expected to add over half a million people to the pool of eligible participants, helping more households build emergency savings during a time of high living costs and inflation.
How It Works
Participants can:
- Save between £1 and £50 per month
- Earn a 50p bonus for every £1 saved
- Receive up to £600 after two years, and another £600 after four years
- Open and manage their account via GOV.UK or the HMRC mobile app
The bonus is calculated based on the highest balance saved during each two-year period, meaning savers do not need to maintain constant deposits to benefit. Withdrawals are allowed at any time, although they may affect the amount of bonus received.
Why It Matters
According to government data, over 500,000 people have already participated in the scheme, with 93% saving the maximum monthly amount of £50. The expansion means hundreds of thousands more can now access a secure way to build savings and receive a significant boost from the government.
Emma Reynolds, Economic Secretary to the Treasury, said:
“We want more people to have a bit in the kitty for a rainy day. Expanding this scheme is part of our plan to support working people.”
Michelle Highman, CEO of The Money Charity, praised the move:
“This extension and eligibility expansion will help many more people to build a much-needed financial buffer.”
How to Apply
Opening an account is easy and can be done in just a few minutes:
- Visit the Help to Save portal on GOV.UK
- Sign in using your Government Gateway ID
- Confirm your eligibility
- Start saving
A Lifeline for Low-Income Earners
With inflation still squeezing household budgets and the cost of living remaining high, the Help to Save scheme offers a rare win-win for savers—combining flexibility with a lucrative government incentive. It’s also one of the few financial products aimed squarely at supporting people on benefits.
For those struggling to set money aside, this scheme could be the start of a more secure financial future.
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