In a major boost for low-income families, the government has confirmed that its Help to Save scheme will continue indefinitely, having been made permanent following the recent Budget. The initiative, which offers a generous 50% bonus on savings, was originally scheduled to end in 2027.
Expanded Eligibility from 2028
Chancellor Rachel Reeves secured the future of the scheme, and HM Revenue & Customs (HMRC) has now announced a significant expansion of the eligibility criteria. From April 2028, around 1.5 million additional households will qualify for the support. The change is designed to extend help to more people on low incomes, including Universal Credit claimants with caring responsibilities.
HMRC celebrated the move on social media, stating on X: "Help to Save is here to stay - and more families can benefit." The department emphasised that the permanent status and expanded criteria mean more support for those who need it most.
How the Help to Save Scheme Works
The scheme is a government-backed initiative that encourages saving by offering a 50% bonus on deposits. Participants can save between £1 and £50 per month. For every £1 saved, they earn an extra 50p from the government.
Savers who deposit the maximum £50 each month over the full four-year term can accumulate a total of £2,400 and receive the maximum bonus of £1,200. Bonus payments are paid directly into the saver's bank account at the end of the second and fourth years.
Latest HMRC figures show the scheme's impact to date: nearly half a million people have already received over £220 million in bonus payments, with some achieving the full £1,200 bonus. Around one in five customers have opened an account via the HMRC app, which lets users track deposits and monitor their bonus.
Potential Impact for Millions
With Department for Work and Pensions (DWP) data indicating that around 8.3 million people currently receive Universal Credit, the eligibility expansion opens the door for millions more households to build a savings safety net. The scheme allows savings to be paid in by debit card, standing order, or bank transfer, and money can be withdrawn at any time, though this may affect the bonus amount.
This permanent commitment to Help to Save marks a significant long-term policy shift, providing certainty and enhanced financial support for low-income families across the UK for years to come.
