Millions of people claiming Universal Credit are set to receive a significant financial boost following a major announcement in the upcoming Budget.
What is the Help to Save Scheme?
Chancellor Rachel Reeves is expected to announce that the Help to Save scheme will be made permanent, saving it from its planned expiration in 2027. This government-backed initiative offers a substantial incentive for low-income savers.
The scheme works by providing a tax-free 50 per cent bonus on savings. For every £1 saved over a four-year period, claimants receive a 50p bonus from the government. This means that if you save the maximum amount, you could be in line for a total bonus of £1,200.
How Does the Savings Account Work?
The Help to Save account is designed to be flexible and secure. You can save between £1 and £50 each calendar month, and you are not obliged to make a deposit every month. Payments can be made via debit card, standing order, or bank transfer.
While you can pay into the account as many times as you like within a month, the maximum total deposit per calendar month is £50. For instance, if you save £50 by the 8th of January, you cannot make another payment until the 1st of February. Withdrawals can only be made from your Help to Save account into your personal bank account.
Chancellor's Commitment to Change
In her statement to MPs, Chancellor Rachel Reeves is expected to outline her vision for the economy. She will state: “I will take the fair and necessary choices to deliver on our promise of change. I will not return Britain back to austerity, nor will I lose control of public spending with reckless borrowing.”
She will also emphasise her commitment to helping families with the cost of living, cutting hospital waiting lists, and reducing the national debt. The Chancellor plans to push forward with a significant drive for growth, focusing on investment in infrastructure, housing, security, and skills training.
Furthermore, the government has confirmed plans to extend the scheme's eligibility to parents and carers from 2028 onwards, widening its reach and potential impact. This move is part of a broader effort to build a fairer and more secure Britain.
