The UK Government has significantly widened the scope of its Help to Save initiative, allowing more than 550,000 additional individuals to benefit from generous savings bonuses. As of May 2025, anyone working and receiving Universal Credit is eligible to participate, making this an important step in helping working families tackle the ongoing cost-of-living challenges.
What is the Help to Save Scheme?
Help to Save is a government-backed savings account offering a 50% bonus on deposits. Launched in 2018, the scheme is designed to help low-income earners build financial resilience. Participants can save between £1 and £50 monthly, and in return, receive a 50p bonus for every pound saved.
This means those saving the maximum £50 each month over four years (£2,400 in total) will receive up to £1,200 in tax-free bonuses. Bonuses are paid in two instalments: at the end of the second and fourth years.
Expanded Eligibility in 2025
The most significant change this year is the expansion to all working individuals on Universal Credit. This inclusion adds over half a million new potential participants, providing broader financial support to households in need.
This change is part of the Labour Government’s broader “Plan for Change,” which focuses on fostering economic growth and financial stability across the UK.
Key Features of the Help to Save Scheme
| Feature | Details |
|---|---|
| Eligibility | Working individuals receiving Universal Credit or Tax Credits |
| Monthly Deposit Range | £1 to £50 |
| Bonus Rate | 50% of the highest balance saved in each 2-year period |
| Maximum Bonus Over 4 Years | £1,200 |
| Access | Online via GOV.UK or HMRC App |
| Withdrawal Option | Allowed anytime (may impact bonus calculation) |
| Payment Methods | Debit card, bank transfer, or standing order |
| Scheme Duration | Extended until April 2027 |
High Engagement and Ease of Access
According to HMRC, 93% of users deposit the full £50 every month, showing strong engagement and trust in the scheme. The setup process is quick and easy—taking less than five minutes—and users can manage their accounts seamlessly through the HMRC app. In 2024 alone, nearly 18,500 accounts were opened via the app.
With real-time tracking, users can monitor their contributions and expected bonuses directly from their smartphones, making savings management convenient and transparent.
Why This Matters in 2025
The cost of living remains a significant pressure point for many UK households. Expanding access to this 50% government-backed savings bonus is a strategic move to promote better financial habits and provide a cushion for emergencies.
Emma Reynolds, Economic Secretary, emphasized that the initiative aligns with the government’s Plan for Change: “Security for working people is at the heart of our mission. This scheme ensures that more families can build a financial safety net, even on tight budgets.”
Financial Experts Applaud the Expansion
Michelle Highman, CEO of The Money Charity, praised the extension, calling it a “brilliant way to promote saving among those who need it most.” She noted that even modest monthly deposits can create meaningful financial security, especially with a 50% bonus to amplify returns.
Conclusion
With the Help to Save scheme now open to a broader group of UK residents, including over 550,000 more working individuals on Universal Credit, May 2025 marks a turning point for inclusive financial support. Savers stand to gain significantly through disciplined monthly contributions, enjoying a return far beyond typical savings accounts.
This program doesn’t just encourage saving; it empowers people to take control of their financial future. Accessible, rewarding, and now more inclusive than ever, Help to Save is a practical tool for anyone looking to strengthen their savings with government support.
FAQs
Who is eligible for the Help to Save scheme in 2025?
From May 2025, all working individuals receiving Universal Credit or Working Tax Credit are eligible.
How much can I save and earn with the scheme?
You can save between £1 and £50 per month. Over four years, the maximum bonus you can earn is £1,200 if you deposit the full £2,400.
When are the bonuses paid?
Bonuses are paid at the end of the second and fourth years of account activity.
How can I open an account?
Accounts can be opened online via GOV.UK or through the HMRC app, which takes less than five minutes.
What happens if I withdraw money?
You can withdraw funds at any time, but doing so may reduce the bonus calculated for that period.
Can I change how much I deposit each month?
Yes, you can vary your monthly deposit amount or skip a month entirely without penalty.
Is the bonus taxed?
No, Help to Save bonuses are tax-free.
How long is the scheme running?
The scheme has been extended and will now run until April 2027.
How is the bonus calculated?
The bonus is 50% of the highest balance saved during each two-year period.
Is there support available if I have questions?
Yes, support is available through HMRC’s customer service and the Help to Save section on GOV.UK.
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