Help to Save is open to people receiving benefits including Working Tax Credit, Child Tax Credit and Universal Credit and offers a generous savings bonus.
Help to Save – the government savings scheme for low-income earners, which offers a 50% bonus payment worth up to £1,200 over 4 years – has been extended to April 2025, HM Revenue and Customs (HMRC) has confirmed.
More than 359,200 customers have opened savings accounts since its launch in September 2018 and an additional 3 million individuals could still benefit from the savings scheme as a result of the extension.
Help to Save is a savings scheme for low-income earners. Savers can deposit between £1 and £50 a month into their account and will receive a government bonus– even if money has been withdrawn.
Savers will earn a 50 pence bonus for every £1 saved and the bonus payments are paid in the second and fourth years. This means that someone saving £2,400 – the maximum amount they could deposit over four years – would receive a £1,200 bonus from the government, paid directly into their bank account.
Setting up a Help to Save account online is quick and easy to do, and takes less than 5 minutes to sign up. Eligible individuals can find out more and how to apply on GOV.UK or via the HMRC app.
Myrtle Lloyd, HMRC’s Director General for Customer Services, said:
Help to Save can encourage positive saving habits – no matter what you can afford to save – and the 50% government bonus payment can help savers when they need it most.
It is quick and easy to apply online or via the HMRC app, just search ‘help to save’ on GOV.UK to find out more.
Andrew Griffith, Economic Secretary to the Treasury, said:
Millions of people could benefit from a boost to their savings through Help to Save and thanks to our Spring Budget reforms the scheme has been extended until 2025.
Whatever amount you can save will trigger a top up from the Government, so take advantage and apply today.
Individuals can open a Help to Save account if, when they apply, they are receiving:
- Working Tax Credit
- Child Tax Credit and are entitled to Working Tax Credit
- Universal Credit and they (with their partner, if it is a joint claim) had take-home pay of £722.45 or more in their last monthly assessment period.
HMRC has prepared a video on YouTube to help customers find out more about Help to Save.
Help to Save savings explained
Accounts are open for a maximum of 4 years and individuals can make deposits as many times as they like by debit card, bank transfer or standing order, without going over the monthly saving limit of £50. Individuals can also withdraw money at any time, although this may affect their 50% bonus payments.
The government published a consultation on the Help to Save scheme on 27 April 2023, seeking views on how the scheme can be reformed and simplified.
The government is offering Help for Households. Check GOV.UK to find out what cost of living support individuals could be eligible for.
Further information
Help to Save was launched in September 2018 and was due to end in September 2023 but it has been extended until April 2025. The extension was announced at Spring Budget on 15 March 2023.
More information about Help to Save
How the bonus payments work:
- after the first 2 years, customers will get a first bonus if they have been using their account to save. This bonus will be 50% of the highest balance saved.
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after 4 years, they will get a final bonus if they continue to save. This bonus will be 50% of the difference between 2 amounts:
- the highest balance saved in the first 2 years (years 1 and 2)
- the highest balance saved in the last 2 years (years 3 and 4)
- if their highest balance does not increase, they will not earn a final bonus.
- the bonus is paid into their bank account, not their Help to Save account.
