HMRC has explained how more than half a million Brits will become eligible for a bonus worth up to £1,200. The alert relates to Help to Save which is a type of savings account for people claiming Universal Credit.
This account gives you a 50% bonus on your savings, something which Martin Lewis previously described this as an “unbeatable” rate. You can put away between £1 and £50 each month – and for every £1 you save, you get 50p back.
The account lasts four years with bonuses paid after the second and fourth years of the account being opened. If you’re able to save the maximum of £50 each month, you will have saved £2,400 by the end of the four years and bonuses worth £1,200.
You don’t have to save every month and you can save less and still get a bonus. For example, if you save £25 a month over two years, your bonus would be £600 back. Help to Save was due to end in April 2025 but it has been extended by a further two years until April 2027 – and the eligibility criteria has been expanded.
Under previous rules, you could only open a Help to Save account if you, or you and your partner, had a take-home pay of £722.45 or more in your last monthly assessment period. But now anyone who claims Universal Credit and earns at least £1 from work will be able to open a Help to Save account.
Economic Secretary Emma Reynolds said: “Security for working people is at the heart of our Plan for Change. We want more people to have a bit in the kitty for a rainy day, which is why we are giving hundreds of thousands more working families on tight budgets access to this support.”
Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “Thousands of customers have already benefitted from Help to Save and many more are now eligible to get a great return of 50% on top of their savings, no matter how little you can save each month. Go online or via the HMRC app to find out more and apply today.”
Michelle Highman, Chief Executive of The Money Charity, said: “We are really pleased to see the Help to Save scheme extended and made available to more people. It’s a brilliant way for people to start to save and to build their financial resilience and futures. Saving even just a little each month will help, and the added 50% bonus payment from the Government means that if you are eligible, then it’s a great place to boost your savings.”
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You can open your Help to Save account through GOV.UK or by calling 0300 322 7093. If you’re in a couple, you and your partner can both open separate Help to Save accounts, even if you receive benefit payments as a couple.
If you have savings elsewhere, having a Help to Save account could potentially see your benefits reduced if you go over a certain threshold. If you claim Universal Credit or Housing Benefit, you and your partner can have up to £6,000 in personal savings – above this amount, and your benefits could be reduced.
This would include any savings in your Help to Save account.
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