People could be earning extra money back from HMRC into a certain bank account – but only if they meet strict rules. Sticking with this savings scheme could help people earn an extra £1,200 with contributions as little as £1 a month.
Posting on X, a spokesperson for HMRC said: « Want to boost your savings? With Help to Save, for every £1 that eligible Universal Credit claimants save, the Government adds 50p. That’s up to £1,200 in bonus payments over four years. »
What is Help to Save?
The Help to Save scheme was first launched in September 2018. It was designed to offer ‘top-ups’ for those on Universal Credit or Working Tax Credits who were saving cash. The 50p bonus was worked out based on every £1 saved.
It was set up to help eligible people save up to £50 a month in a secure savings account, with a minimum contribution of £1 for those claiming the benefit. For every £1 that was saved per calendar month, people can earn a bonus of 50p, over four years.
The 50% bonus is payable at the end of the second and fourth years and is based on how much account holders have saved. The scheme, which was announced and run under the previous Conservative Government, was extended from its original end date of September 2023 to April 2025. There are plans to make it permanent and expand eligibility from 2028.
What happens after the fourth year?
HMRC confirmed: « Your Help to Save account will close four years after you open it. You will not be able to reopen it or open another Help to Save account. You’ll be able to keep the money from your account. »
Who is eligible for one of these accounts?
You can open a Help to Save account if you’re receiving Universal Credit and you (with your partner if it’s a joint claim) had take-home pay of £1 or more in your last monthly assessment period.
You also need to be living in the UK, HMRC confirmed. If you get payments as a couple, you and your partner can apply separately for your own Help to Save accounts.
How do the Help to Save bonuses work?
After your first two years, you’ll get a first bonus if you’ve been using your account to save. This bonus will be 50% of the highest balance you’ve saved.
After four years, you’ll get a final bonus if you continue to save. This bonus will be 50% of the difference between the two amounts. If your highest balance does not increase, you will not earn a final bonus.
The most you can pay into your account each calendar month is £50, which is £2,400 over four years. The most you can earn from your savings in four years is £1,200 in bonus money.
How to apply for a Help to Save account
People can sign up online via the GOV.UK website for one of these savings accounts, provided they meet the eligibility criteria. You’ll need your National Insurance number or postcode, your UK bank details and two of the following documents:
