The UK government has cemented a vital financial support scheme, guaranteeing long-term help for households on low incomes. Chancellor Rachel Reeves used last week's Budget to announce that the Help to Save scheme will become a permanent fixture, scrapping its planned 2027 end date.
Major Expansion Set for 2028
In a significant move, HM Revenue and Customs (HMRC) has revealed that the scheme's eligibility criteria will be widened. From April 2028, up to 1.5 million additional families are expected to qualify for the programme. This expansion will specifically benefit those on Universal Credit with caring responsibilities, offering more targeted support.
HMRC celebrated the decision on social media platform X, stating: "Help to Save is here to stay – and more families can benefit." The move underscores a commitment to aiding financial resilience among the UK's most vulnerable.
How the £1,200 Bonus Works
The Help to Save initiative is designed to encourage saving by offering a generous government top-up. Participants can deposit between £1 and £50 per month into a dedicated account. For every £1 saved, the government adds a 50p bonus.
This means that if a saver manages to put away the maximum £50 each month over the full four-year term, they will save a total of £2,400. The government's 50% bonus on this amount would then yield the full £1,200 reward. Bonuses are paid directly into the saver's bank account at the end of the second and fourth years.
Official data shows the scheme's impact already: nearly half a million people have collectively received over £220 million in bonus payments. With around 8.3 million people currently claiming Universal Credit, the potential for future uptake is substantial.
Accessing and Managing Your Account
Opening and managing a Help to Save account has been made convenient. Approximately one in five customers has chosen to set up their account using the official HMRC app, which allows users to track their balance and projected bonuses easily.
Deposits can be made flexibly via debit card, standing order, or bank transfer. While withdrawals are permitted at any time, it is crucial to note that taking money out can reduce the final bonus payment, as it is calculated on the highest balance achieved.
The permanence of Help to Save provides much-needed certainty for millions, offering a structured path to build a savings buffer with significant government support.
