HMRC Confirms Permanent Status for Help to Save Scheme
Millions of families on low incomes across the United Kingdom are being urged to verify their eligibility for up to £1,200 in free bonus cash from the Government. HM Revenue and Customs has officially confirmed that its Help to Save scheme is now a permanent fixture, ending previous uncertainties about its long-term availability.
Expanded Eligibility from 2028
From April 2028, up to 1.5 million additional families will become eligible under newly expanded criteria. This significant expansion means more support for individuals receiving Universal Credit, including those with caring responsibilities, who could see their savings enhanced by a substantial 50% Government bonus.
In a recent social media announcement, HMRC stated: "Help to Save is here to stay – and more families can benefit. The scheme has been made permanent, and from April 2028, up to 1.5 million more families will be eligible thanks to expanded criteria."
How the Help to Save Scheme Operates
Help to Save is a Government-backed savings account specifically designed for working households with low incomes. It provides a bonus of 50p for every £1 saved over a four-year period – effectively delivering a 50% return funded by taxpayers.
Savers can deposit between £1 and £50 each month, with a maximum total saving of £2,400 over four years. The maximum bonus available is £1,200. All deposits within the scheme are fully backed by the Government, ensuring complete security for participants' funds.
Key Scheme Limits
- Maximum monthly saving: £50
- Maximum total saving over four years: £2,400
- Bonus rate: 50%
- Maximum total bonus: £1,200
Eligibility Requirements
You can open a Help to Save account if you meet the following conditions:
- You are currently receiving Universal Credit
- You (or you and your partner) had take-home pay of £1 or more in your last monthly assessment period
- You reside in the United Kingdom
Couples claiming Universal Credit can each open their own individual accounts, but they must apply separately. Importantly, if you stop claiming benefits after opening an account, you can continue saving until the four-year term concludes.
Impact on Benefits
For households concerned about exceeding savings limits, there is reassuring news. If you or your partner have £6,000 or less in personal savings, this will not affect your Universal Credit payments. This threshold includes funds held within Help to Save accounts. The bonuses themselves also do not influence Universal Credit calculations.
The same £6,000 threshold applies to Housing Benefit, and Help to Save bonuses are not counted against this limit.
Important Warning About Withdrawals
Savers are permitted to withdraw money at any time, but doing so could significantly reduce the bonus they ultimately receive. Withdrawing cash makes it more challenging to accumulate the "highest balance" used to calculate the 50% bonus.
If you close your account prematurely, you will forfeit your next bonus payment and will be unable to open another Help to Save account in the future.
What Changes in 2028?
From April 2028, eligibility will expand substantially, making up to 1.5 million additional families able to apply. This move not only broadens access but also solidifies the scheme's permanent status, providing long-term certainty for low-income households.
For families managing increasing living costs, the scheme offers one of the most generous guaranteed returns available anywhere – a Government-backed 50% boost that would be impossible to match in conventional savings markets.
