HMRC Extends £1,200 Help to Save Scheme, Adding 550,000 More Eligible Participants: Check Eligibility Criteria
HMRC Extends: The UK Government has expanded the Help to Save scheme, making an additional 550,000 individuals eligible for this important savings initiative. Effective from 6 April 2025, the expansion aims to support low-income workers by encouraging regular savings, backed by a government-funded bonus.
The Help to Save scheme, originally launched to strengthen financial security for Universal Credit and Working Tax Credit claimants, now becomes accessible to thousands more, creating a significant opportunity for financial growth.
HMRC Extends
| Feature | Details |
|---|---|
| Eligibility | Universal Credit claimants earning £1+ now qualify (GOV.UK Help to Save) |
| Scheme Extension | Runs until April 2027 |
| Monthly Savings Range | £1 to £50 |
| Government Bonus | 50p for every £1 saved (up to £1,200 bonus) |
| Application Options | GOV.UK website or HMRC app |
| Withdrawal Flexibility | Allowed anytime (bonus may be affected) |
The Help to Save scheme is a powerful opportunity for low-income individuals to build financial resilience with the government’s support. With expanded eligibility criteria and an extended timeline through 2027, more people than ever can access up to £1,200 in bonuses simply by saving small amounts regularly. By taking advantage of this scheme, savers can enjoy government-matched growth on their money while developing crucial long-term financial habits. Check your eligibility today and start building a stronger financial future!
What is the Help to Save Scheme?
The Help to Save scheme is a UK government savings account designed for individuals on a low income. It rewards savers by offering a 50% bonus on their savings, encouraging regular and manageable financial habits. Participants can open an account if they receive Working Tax Credit or Universal Credit.
Initially launched in 2018, Help to Save was scheduled to conclude in 2025, but recent changes ensure its benefits extend to April 2027.
Recent Changes to the Help to Save Scheme
Expanded Eligibility: Previously, Universal Credit recipients had to earn at least £846.56 in their last monthly assessment to qualify. Now, anyone earning just £1 or more during the period will be eligible.
Extended Duration: The deadline for new accounts has been pushed from April 2025 to April 2027, providing two additional years for participants to benefit from the savings scheme.
HMRC Extends: How the Help to Save Scheme Works?
Monthly Savings
Participants can deposit between £1 and £50 per month, either by standing order or manual payments. You do not need to save every month, and the amount can vary.
Government Bonus
For every £1 saved, the government adds 50p. Over four years, the maximum bonus available is £1,200.
Bonus Payment Structure
- First Bonus: After two years, you will receive a bonus equal to 50% of your highest balance saved during the first two years.
- Second Bonus: After four years, you could receive another bonus based on savings made during the third and fourth years, provided your balance increased.
Flexibility to Withdraw
Participants can withdraw savings at any time, though doing so may reduce their potential bonus.
HMRC Extends: How to Apply for the Help to Save Scheme?
Eligibility Check
You must be receiving Universal Credit or Working Tax Credit and have earned at least £1 in your most recent assessment period.
Gather Information
Have your National Insurance number and UK bank account details ready.
Application Process
- Apply online at the GOV.UK Help to Save page.
- Use the HMRC app available for download on iOS and Android.
Account Management
You can manage your Help to Save account online or through the HMRC app once opened.
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FAQs on HMRC Extends
1. Who is eligible for the Help to Save scheme?
Anyone receiving Universal Credit (with £1+ earnings) or Working Tax Credit is eligible to apply for the Help to Save scheme.
2. How much can I save each month?
You can save any amount between £1 and £50 per month. You are not required to save every month, and the contribution amount can change.
3. How do the bonuses work?
Bonuses are paid after two and four years, each based on your highest saved balance during the periods. You can earn up to £1,200 in bonuses over four years.
4. What happens if I withdraw my savings early?
You can withdraw savings at any time, but it may reduce your bonus, as the bonus is calculated based on your highest savings balance.
5. How do I apply for the Help to Save scheme?
You can apply online at the official GOV.UK Help to Save page or by downloading the HMRC app.
