Millions of people receiving Universal Credit payments are set to benefit from a significant financial boost after a major government savings scheme was granted permanent status.
Budget announcement secures future of savings scheme
In her Autumn Budget, Labour Chancellor Rachel Reeves confirmed that the Help to Save initiative will continue indefinitely. The scheme, which was originally scheduled to end in 2027, now offers long-term security for low-income savers across the UK.
This decision means that the approximately 8.3 million individuals currently claiming Universal Credit through the Department for Work and Pensions (DWP) will have ongoing access to a scheme that can pay a bonus of up to £1,200.
How the Help to Save scheme works
Help to Save is a government-backed scheme run by HM Revenue and Customs (HMRC) designed to encourage saving among those on lower incomes. It offers a generous 50% bonus on money saved.
Participants can deposit between £1 and £50 per month into their dedicated account. For every pound saved, they earn an extra 50 pence in bonus money from the government.
The scheme operates over a four-year period. Savers receive their first bonus payment after two years, calculated as 50% of the highest balance achieved in that time. A final bonus is paid at the end of the fourth year, based on any increase in the highest balance from the first two years to the last two years.
Myrtle Lloyd, HMRC's Chief Customer Officer, urged people to take advantage: "Millions have been paid out to people who are putting aside whatever cash they can spare each month - so don't miss out on making the most of your savings. Go to GOV.UK to open your Help to Save account today."
Proven success and easy access
Official data reveals the scheme's substantial impact already. HMRC figures show that nearly half a million people on low incomes have collectively received more than £220 million in bonus payments through Help to Save.
Accessing and managing an account is designed to be straightforward:
- Accounts can be opened via the GOV.UK website, with a fifth of customers using the HMRC app.
- Deposits can be made by debit card, standing order, or bank transfer.
- Money can be withdrawn at any time, though this may affect the bonus amount payable.
By saving the maximum of £50 per month (totalling £2,400 over four years), a participant can earn the full £1,200 bonus. All bonus payments are paid directly into the saver's personal bank account, not the Help to Save account.
This move to make the scheme permanent represents a significant policy shift, providing financial certainty and a powerful incentive for long-term saving to some of the nation's most financially vulnerable households.
