Families on low incomes could be entitled to support
Millions of families on low incomes are being encouraged to check whether they could receive up to £1,200 in free bonus cash from the Government. HMRC has confirmed its Help to Save scheme is now permanent.
From April 2028, up to 1.5 million more families will become eligible under expanded criteria. This means additional support for people on Universal Credit, including those with caring responsibilities, who could see their savings boosted by a substantial 50% Government bonus.
In a social media post, HMRC said: “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 scheme works
Help to Save is a Government-backed savings account targeted at working households on low incomes. It pays a bonus of 50p for every £1 saved over four years – effectively a 50% return funded by taxpayers.
Savers can deposit between £1 and £50 a month, up to a maximum of £2,400 over four years. The maximum bonus available is £1,200.
Key limits at a glance.
- Maximum monthly saving £50.
- Maximum total saving (4 years) £2,400.
- Bonus rate 50%.
- Maximum total bonus £1,200.
All savings in the scheme are backed by the Government, meaning deposits are secure.
Who can apply?
You can open a Help to Save account if:
- You are receiving Universal Credit.
- You (or you and your partner) had take-home pay of £1 or more in your last monthly assessment period.
- You live in the UK
Couples claiming Universal Credit can each open their own account, but they must apply individually. Importantly, if you cease claiming benefits after opening the account, you’re still able to continue saving until the four-year term concludes.
Will it impact your benefits?
For numerous households concerned about exceeding savings limits, there’s reassurance. If you or your partner have £6,000 or less in personal savings, this won’t affect the amount of Universal Credit you receive. This includes funds held in Help to Save. The bonuses themselves also don’t influence Universal Credit payments.
The same £6,000 threshold applies to Housing Benefit, and Help to Save bonuses aren’t counted against it.
Warning about withdrawals
Savers are permitted to withdraw money at any time – however, doing so could diminish the bonus they receive. Withdrawing cash makes it more challenging to accumulate the “highest balance” used to calculate the 50% bonus.
If you close the account prematurely, you’ll forfeit your next bonus and won’t be able to open another Help to Save account.
What’s changing in 2028?
From April 2028, eligibility will expand, making up to 1.5 million additional families able to apply. The move makes the scheme permanent, ending previous uncertainty over its long-term future.
For households juggling rising bills, the scheme offers one of the most generous guaranteed returns available anywhere – a Government-backed 50% boost that would be impossible to match in the normal savings market.
Details of the scheme can be found here.
