The UK's tax authority is making a direct appeal to millions of households, urging them to claim a potential payment boost of up to £1,200. HM Revenue and Customs (HMRC) is targeting 7.5 million eligible Brits, encouraging them to take advantage of a government-backed savings scheme that has received a powerful endorsement from money-saving expert Martin Lewis.
How the Help to Save Scheme Works
This initiative, known as the Help to Save scheme, is designed to provide a significant financial lift for those receiving Universal Credit. The mechanism is straightforward: for every £1 saved over a four-year period, the government adds a bonus of 50p. This represents a risk-free return of 50% on savings, an offer rarely matched by any high-street bank or investment product.
Participants have considerable flexibility. They can save any amount between £1 and £50 per calendar month, and crucially, they are not required to make a payment every single month. HMRC clarifies that an account holder can pay in as many times as they wish within a month, but the total monthly deposit cannot exceed £50.
The savings and bonus structure is spread over four years. Account holders receive their first bonus payment at the end of the second year, and a final bonus at the end of the fourth year. The bonuses are calculated based on the highest balance achieved in the account during each two-year period. After four years, the account closes, and the individual can withdraw all their saved money along with the full government bonus.
Martin Lewis's Powerful Endorsement
The scheme has been publicly championed by Martin Lewis, the founder of MoneySavingExpert.com, who has described it as an "unbeatable form of savings". On social media platform X, he explained the tangible benefits in simple terms to his vast audience.
Lewis provided a clear example: "You put £50 in a month for a year, you’ve got 600 quid. You have a nightmare... You spend your 600 quid you can’t afford to put any more in. At the end of the two years, the highest amount you had in was £600. You get 50% of that, which is £300."
He emphasised that the scheme is specifically designed to help those on lower incomes build financial resilience by creating a safety net for unexpected expenses, such as a broken fridge or other essential household costs. The process then repeats for the subsequent two years, offering the potential for another 50% bonus on top of any further savings.
For the millions eligible for Universal Credit, this represents a rare opportunity to receive a substantial, government-backed boost to their finances, providing both immediate security and a long-term savings incentive.
