- Government’s Help to Save scheme now open to 550,000 more people to help with cost of living
- Those saving £50 a month can expect £25 Government top-up, putting more money in people’s pockets
- Part of Government’s mission to grow the economy and deliver on our Plan for Change
More than half a million more UK savers are in line for Government bonuses worth up to £25 a month to boost their cash pots and help ease rises in the cost of living, HM Revenue and Customs (HMRC) has announced today.
As part of the Government’s mission to grow the economy and improve lives in every corner of the UK and to deliver its Plan for Change, Help to Save is now open to anyone working and receiving Universal Credit – rewarding 550,000 more people.
An account can be set up in less than 5 minutes and easily managed through GOV.UK or the HMRC app, making it accessible to people throughout the UK.
Savers who deposit the maximum amount of £2,400 over four years will receive a bonus totalling £1,200 into their bank accounts, with payments coming at the end of the second and final year.
Savers can deposit between £1 and £50 each month earning an extra 50 pence for every £1 saved, with bonuses paid in the second and fourth years of the account being opened. The bonus payment applies to the highest amount saved within the period.
Money can be withdrawn at any time, although this may affect the 50% bonus payments.
Help to Save was launched in September 2018 and was due to end in September 2023. It was extended to April 2025 and has now been extended until April 2027.
Previous eligibility criteria meant savers had to be in receipt of Tax Credits or Universal Credit and be earning at least 16 hours a week at National Living Wage.
How the bonus payments work:
- after the first 2 years, customers will get a first bonus if they have been using their account to save. This bonus will be 50% of the highest balance saved.
- after 4 years, they will get a final bonus if they continue to save. This bonus will be 50% of the difference between 2 amounts:
- the highest balance saved in the first 2 years (years 1 and 2)
- the highest balance saved in the last 2 years (years 3 and 4)
- if their highest balance does not increase, they will not earn a final bonus.
- the bonus is paid into their bank account, not their Help to Save account.
