More than half a million more UK savers are in line for Government bonuses worth up to £25 a month to boost their cash pots from today, HM Revenue and Customs (HMRC) has announced. As part of the Government’s Plan for Change, the Help to Save account is now open to anyone working and receiving Universal Credit, rewarding 550,000 more people.
Help to Save is a savings account offered by the Government to people on low incomes who receive the Department for Work and Pensions (DWP) Universal Credit benefit. Savers can deposit between £1 and £50 each month, earning an extra 50 pence for every £1 saved – a 50% interest rate. Savers who deposit the maximum amount of £2,400 over four years will receive a bonus totalling £1,200 into their bank accounts, with payments coming at the end of the second and final year.
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.”
Nearly 18,500 people opened a Help to Save account via the HMRC app in 2024, and 93% of savers pay in the maximum £50 every month. An account can be set up in less than five minutes and easily managed through GOV.UK or the HMRC app.
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.”
Money can be withdrawn at any time, although this may affect the 50% bonus payments.
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.”
How do Help to Save bonuses work?
Savers will get the first bonus after the first two years, which will equate to 50% of the highest balance saved.
After four years, savers get the final bonus if they continue to save. This bonus will be 50% of the difference between two amounts:
- The highest balance saved in the first two years (years one and two)
- The highest balance saved in the last two years (years three and four).
The most Britons can earn from their savings in four years is £1,200 in bonus money. Adding this to the maximum amount people can save (£50 per month, equating to £2,400 over four years), it can leave savers with a sizeable £3,600 pot. However, it must be noted that if the highest balance doesn’t increase, savers will not earn a final bonus.
The Help to Save account will close four years after it’s opened and the saver will not be able to reopen it or open another one.
