Universal Credit claimants have the opportunity to receive up to £1,200 in bonus payments through HMRC’s Help to Save scheme, as confirmed by Chancellor Rachel Reeves in the recent Labour Party Autumn Budget. Originally slated to expire in 2027, the scheme is now permanent, providing ongoing financial support to low-income savers.
Data from HMRC reveals that nearly half a million low-income individuals have already benefited from over £220 million in bonuses through Help to Save, with payments of up to £1,200. Given that around 8.3 million people currently claim Universal Credit, millions could potentially take advantage of this government initiative.
Help to Save is designed to encourage saving among low-income earners by offering a 50% bonus on their contributions. Participants can save between £1 and £50 each month, with HMRC adding 50p for every pound saved. Over a four-year period, if someone saves the maximum £2,400, they will receive a total bonus of £1,200. This bonus is paid directly into their bank account at two key points: the end of the second year and the end of the fourth year.
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Myrtle Lloyd, HMRC’s Chief Customer Officer, highlights the scheme’s benefits: “Millions have been paid out to people who are putting aside whatever cash they can spare each month — so don’t miss out on making the most of your savings. Visit GOV.UK to open your Help to Save account today.”
Many participants have taken advantage of the convenience of the HMRC app to open and manage their accounts, tracking deposits and bonuses easily. Deposits can be made via debit card, standing order, or bank transfer, while withdrawals are allowed at any time but may affect bonus eligibility.
HMRC explains how the bonuses work: “After your first two years, you’ll receive your first bonus — 50% of the highest balance you’ve saved. After four years, if you continue saving and your balance has increased, you’ll get a final bonus equal to 50% of the difference between your highest balance at year two and at year four. The maximum monthly deposit is £50, and the highest possible bonus over four years is £1,200. Bonuses are paid directly into your bank account, not into the Help to Save account itself.”
This scheme offers a valuable opportunity for Universal Credit claimants to enhance their financial security by building savings with government-boosted incentives.