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Low-income households may be eligible for government support of up to £1,200. Millions of families across the country are being encouraged to verify their eligibility for this financial assistance.
Beginning in April 2028, eligibility criteria will broaden, potentially benefiting an additional 1.5 million families. HMRC has announced that its Help to Save initiative will continue indefinitely.
Consequently, extra assistance will be available for Universal Credit recipients, including those with caring duties, who may see their savings enhanced by a generous 50 per cent government bonus, reports the Express.
HMRC announced via social media: “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.”
Help to Save is a government-supported savings scheme designed for working families on modest incomes.
It provides a bonus of 50p for every £1 saved across a four-year period – essentially delivering a 50 per cent return financed by the taxpayer.
Participants can contribute between £1 and £50 monthly, with a ceiling of £2,400 over the four-year term. The highest bonus obtainable stands at £1,200.
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Key limits:
Maximum monthly saving £50
Maximum total saving (four years) £2,400
Bonus rate 50 per cent
Maximum total bonus £1,200
All funds deposited in the scheme carry government backing, ensuring deposits remain protected. Those eligible to open a Help to Save account include individuals receiving Universal Credit, provided they and their partner earned a take-home pay of £1 or more during their most recent monthly assessment period, and are UK residents.
Partners claiming Universal Credit may each establish their own account, though applications must be submitted separately.
Should you stop claiming benefits after setting up the account, you can still continue putting money aside until the four-year period ends.
For many households worried about breaching savings thresholds, there’s welcome news.
Personal savings of £6,000 or less for you or your partner won’t impact your Universal Credit entitlement.
This encompasses money held within Help to Save. The bonuses paid out also have no bearing on Universal Credit payments. The identical £6,000 limit applies to Housing Benefit, with Help to Save bonuses excluded from calculations.
Account holders can withdraw funds whenever they wish – though this may reduce the bonus they’re entitled to.
Taking money out makes it harder to maintain the “highest balance” which determines the 50 per cent bonus calculation.
Closing the account early means forfeiting your next bonus and losing the ability to open another Help to Save account.
From April 2028, eligibility criteria will broaden, enabling up to 1.5 million more families to participate.
This development secures the scheme’s permanent status, removing previous doubts about its continuation. For families grappling with mounting costs, the scheme provides one of the most attractive guaranteed returns on the market – a Government-backed 50 per cent uplift that would be virtually unattainable through conventional savings products.
