Millions of Universal Credit claimants stand to gain a savings boost worth up to £1,200, following an important announcement expected in Wednesday’s Budget. Labour Party Chancellor Rachel Reeves is set to make the government-backed Help to Save scheme permanent and expand its eligibility to include parents and carers starting in 2028.
The Help to Save scheme offers a tax-free 50% government bonus on savings accumulated over four years. Eligible claimants can save between £1 and £50 each month, with no obligation to deposit monthly. For every £1 saved, the government adds 50p, potentially delivering up to £1,200 in bonuses across the scheme’s duration.
Savings within the scheme are secure, as it is government-backed. Contributions can be made via debit card, standing order, or bank transfer, and while multiple payments can be made monthly, the total cannot exceed £50 per calendar month. Withdrawals are only permitted to a linked bank account.
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In her forthcoming statement to MPs, Chancellor Reeves emphasized a commitment to responsible financial management and support for families. She said, “I will take the fair and necessary choices to deliver on our promise of change. I will not return Britain back to austerity, nor will I lose control of public spending with reckless borrowing.
“I will take action to help families with the cost of living … cut hospital waiting lists … cut the national debt. And I will push ahead with the biggest drive for growth in a generation.
“Investment in roads, rail and energy. Investment in housing, security and defence. Investment in education, skills and training. So together, we can build a fairer, stronger, and more secure Britain.”
This extension of the Help to Save scheme marks a significant opportunity for Universal Credit recipients to enhance their financial stability and secure a meaningful government savings bonus.