UPDATE: |HMRC announces 550,000 more people eligible for £1,200 boost News

People who work and claim Universal Credit are now eligible for a government scheme that could see them get a boost of £1,200

HMRC has announced a major change to its Help to Save account, meaning 550,000 more people will be eligible for a potential £1,200 boost.

The government’s Help to Save account gives people a 50% bonus in their savings, with the scheme pledging to pay £1 to account holders for every £2 that they deposit – with up to a maximum of £25 given back each month.

Savers who deposit the maximum amount of £2,400 over four years will receive a bonus totalling £1,200 into their bank accounts, with payments coming at the end of the second and final year.

Previously, the account was only available to those in receipt of Tax Credits or Universal Credit earning at least 16 hours a week at National Living Wage.

But the government announced last week, on April 17, that the scheme will now be open to anyone who works and also claims Universal Credit – which is set to make 550,000 more people eligible. The change has been made in an effort to help more people with the cost of living.

Emma Reynolds, Economic Secretary to the Treasury, said: “Security for working people is at the heart of our Plan for Change.

“We want more people to have a bit in the kitty for a rainy day, which is why we are giving hundreds of thousands more working families on tight budgets access to this support.”

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The change comes after nearly 18,500 people opened a Help to Save account via the HMRC app in 2024. Since the scheme started in 2018 it has paid out millions of pounds in bonuses to more than 500,000 people.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “Thousands of customers have already benefitted from Help to Save and many more are now eligible to get a great return of 50% on top of their savings, no matter how little you can save each month. Go online or via the HMRC app to find out more and apply today.”

Savers can deposit between £1 and £50 each month, earning an extra 50 pence for every £1 saved, with bonuses paid in the second and fourth years of the account being opened. The bonus payment applies to the highest amount saved within the period.

You do not have to pay money in every month and you can pay in as many times as you like, but the most you can pay in each calendar month is £50.

Michelle Highman, Chief Executive of The Money Charity, said: “We are really pleased to see the Help to Save scheme extended and made available to more people. It’s a brilliant way for people to start to save and to build their financial resilience and futures.

“Saving even just a little each month will help, and the added 50% bonus payment from the Government means that if you are eligible, then it’s a great place to boost your savings.”

The specifics of how Help to Save scheme works are as follows:

• 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.
• 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.

Find out more about Help to Save at GOV.UK.