HMRC Urges Low-Income Families to Check Eligibility for £1,200 Bonus
Millions of families on low incomes across the UK are being urged by HM Revenue and Customs (HMRC) to check if they could pocket up to £1,200 in free bonus cash. This alert comes as part of the government's efforts to support working households through the Help to Save scheme, which has now been made permanent.
Help to Save Scheme Becomes Permanent
HMRC has confirmed that the Help to Save scheme is here to stay, ending previous uncertainties about its long-term future. From April 2028, up to 1.5 million more families will become eligible under expanded criteria, significantly increasing access to this financial support.
The scheme is a government-backed savings account designed specifically for working households on low incomes. It offers a generous bonus of 50p for every £1 saved over a four-year period, effectively providing a 50% return funded by taxpayers.
How the Scheme Works
Savers can deposit between £1 and £50 per month, with a maximum total of £2,400 over four years. This means the maximum bonus available is £1,200. The scheme is particularly beneficial for Universal Credit claimants, including those with caring responsibilities, who could see their savings boosted substantially.
To open a Help to Save account, individuals must be receiving Universal Credit, have had take-home pay of £1 or more in their last monthly assessment period, and reside in the UK. Couples claiming Universal Credit can both open their own accounts, but they must apply separately.
Key Benefits and Eligibility Details
One crucial advantage is that if you stop claiming benefits after opening the account, you can continue saving until the four-year term ends. Additionally, if you or your partner have £6,000 or less in personal savings, this will not affect your Universal Credit payments. This threshold includes money held in Help to Save accounts.
The bonuses themselves also do not impact Universal Credit payments. The same £6,000 threshold applies to Housing Benefit, and Help to Save bonuses do not count against it.
Expanded Eligibility from April 2028
From April 2028, eligibility for the Help to Save scheme will expand, making up to 1.5 million additional families able to apply. This expansion is part of the government's commitment to providing more support to low-income households and encouraging savings habits.
HMRC stated: “Help to Save is here to stay – and more families can benefit. The scheme has been made permanent, and from April 2028, up to 1.5 million more families will be eligible thanks to expanded criteria.”
This move represents a significant step in financial inclusion, offering tangible support to those who need it most while promoting long-term savings stability.
