More than 500,000 Britons in line for £1,200 boost as HMRC explains who's eligible for 'attractive' scheme

Help to Save offers low-income earners a 50 per cent bonus on their savings. Customers can pay in between £1 and £50 each month and get an extra 50 pence for every £1 saved, with bonuses paid directly into bank accounts at the end of the second and fourth years.

Savers who deposit the maximum of £2,400 over the four years of the duration of the scheme will get a £1,200 bonus, with it being paid straight into their bank accounts at the end of the second and fourth year.

Latest figures show that since the scheme launched in 2018, 575,200 customers have opened accounts and together paid £588.2million into their savings pots. Of those, 94 per cent deposited the maximum amount each month.

Economic Secretary to the Treasury Lucy Rigby said: "The Government’s Help to Save scheme has boosted the savings of over half a million people across the country to the tune of £220 million. We’re committed to helping families build financial resilience and putting more money in the pockets of working people."

The scheme, which was originally due to close in September 2023, has been extended until April 2027. This has allowed more than 95,000 extra savers to open accounts who would have otherwise missed out.

To qualify for a Help to Save account, applicants must be living in the UK and receiving Universal Credit, with take-home pay of at least £1 in their last monthly assessment period.

Take-home pay refers to income after deductions such as tax or National Insurance. Couples on joint claims can each apply for their own Help to Save account, but must do so separately.

Those living overseas may also be eligible if they are Crown servants, members of the armed forces, or married to or in a civil partnership with someone who is.

In April 2025, eligibility criteria was expanded to include all working Universal Credit claimants, meaning an additional 550,000 people are eligible to open an account.

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.

When the scheme was widened, 7,800 accounts opened in that month alone, the highest since March 2023.

Myrtle Lloyd, HMRC’s Chief Customer Officer, said: "Millions have been paid out to people who are putting aside whatever cash they can spare each month - so don’t miss out on making the most of your savings. Go to GOV.UK to open your Help to Save account today."

A fifth of accounts have been opened via the HMRC app, where savers can also track deposits and view bonus payments. Money can be paid in via debit card, standing order or bank transfer.

Antonia Stokes, Senior Manager at the Low Incomes Tax Reform Group, added: "The Help to Save scheme is a very attractive product for people on low incomes who want to get into a regular savings habit.

"Everyone who is eligible to take part in the initiative has the chance to earn a bonus on top of the money that they put in, and these bonuses can be increased by paying in the maximum amount allowed each month and making no withdrawals."

She stressed: "Those who are eligible can still receive bonus payments, even if they can’t save the maximum, which makes it an attractive option for savers."

Money can be withdrawn at any time, though doing so may affect the size of bonus payments.

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 per cent of the highest balance saved.

• after 4 years, they will get a final bonus if they continue to save. This bonus will be 50 per cent of the difference between two 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.

For example, if someone saves £25 every month for two years without making any withdrawals, their highest balance will be £600.

At the end of the second year, they would receive a £300 bonus, equal to 50 per cent of that balance. In years three and four, saving an additional £200 would increase their highest balance from £600 to £800.

This would trigger a final £100 bonus, which is 50 per cent of the extra £200 saved. Even if withdrawals were made after the balance reached £800, the final bonus would not be affected.