Victoria Todd, Head of the Low Incomes Tax Reform Group, said: “For those who are able to take part, the Help to Save account is a very attractive savings scheme, especially when the saver is able to maximise their bonuses.
“They can do this by paying in the maximum amount each month and making no withdrawals.
“Those who are eligible can still get bonus payments, even if they can’t save the maximum. That is why we recently welcomed the extension of the scheme to April 2025.”
Customers can check if they are eligible and open an account – which takes less than five minutes – on Gov.uk or via the HMRC app.
Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “Hundreds of thousands of people are benefitting from Help to Save.
“It’s a great way of saving whatever you can and the government will top up your savings by 50 per cent.
“It’s quick and easy to apply online or via the HMRC app. Just search ‘Help to Save’ on GOV.UK to find out more and apply today.”
Myron Jobson, senior personal finance analyst at interactive investor, warned that for those struggling to make ends meet, saving isn't always an option.
He said: “On paper, Help to Save is a great initiative to help instil a culture of savings among the nation’s most cash-strapped individuals. But for those who’ve felt the full force of cost of living squeeze, the priority has been to stay above the breadline.
“If you are on a low income, the problem is that you have little, if anything, to spare to save at the end of the month. Many people make the mistake of trying to save when they are in debt, and yet the cost of debt for most usually vastly outweighs the gain of saving.
“For those who can afford it, a 50 per cent savings bonus is too good a carrot to pass up. Those on a low income should consider whether saving is a priority if it would mean they would have difficulty meeting outstanding debt commitments, particularly priority debts such as council tax, as a result.
"In a perfect world, everyone would have at least three-to-six months’ worth of essential outgoings in savings.”
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