HM Revenue and Customs (HMRC) has confirmed that more people on Universal Credit may be eligible for up to £1,200 in free cash.
What was initially a temporary initiative has been made permanent, with HMRC revealing that from April 2028, approximately 1.5 million more households will become eligible through expanded qualifying conditions.
Chancellor Rachel Reeves secured the future of the Help to Save scheme during last month’s Budget statement, despite its original end date of 2027.
HMRC today said on X, formerly Twitter: “The Help to Save scheme just got even better! The scheme is now permanent for all those eligible.
“And from April 2028, will be extended to all individuals in receipt of Universal Credit who have caring responsibilities. This will help an additional 1.5 million families on low incomes.”
Recent data from HMRC shows that nearly half a million individuals on modest incomes have already received over £220 million through Help to Save bonus payments, with bonuses reaching as much as £1,200.
With Department for Work and Pensions (DWP) statistics indicating around 8.3 million people currently receive Universal Credit, millions of households could potentially benefit from this programme.
Help to Save, an initiative introduced by the UK Government, aims to encourage savings among those with lower incomes by offering a 50% bonus on their saved funds. Participants can deposit anywhere between £1 and £50 each month, earning an additional 50p for every £1 they save.
If savers manage to accumulate the maximum amount of £2,400 over a four-year period (£50 per month), they’ll receive a total bonus of £1,200, which will be transferred into their bank accounts at the end of the second and fourth year.
A considerable proportion of customers, approximately one in five, have chosen to open a Help to Save account via the HMRC app, which allows users to monitor their deposits and view their bonus payments.
Deposits into Help to Save accounts can be made through various methods including debit card, standing order or bank transfer. Withdrawals are allowed at any time, but it’s worth noting that this could impact your bonus.