In a significant move to support low-income households, HM Revenue and Customs (HMRC) has confirmed a major expansion of its Help to Save scheme, which will now become a permanent government offering.
Major Expansion for Low-Income Savers
The key announcement is that approximately 1.5 million more households will become eligible for the scheme thanks to expanded qualifying criteria. This change is scheduled to take effect from April 2028. The update, which follows Chancellor Rachel Reeves's outline in last month's Autumn Budget, means more support will be available for people on low incomes, including those on Universal Credit who have caring responsibilities.
HMRC shared the news on social media platform X, stating: "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."
How the Help to Save Scheme Works
The Help to Save scheme is a government-backed savings account designed specifically for individuals on a low income who receive certain benefits, such as Universal Credit. Department for Work and Pensions (DWP) statistics show around 8.3 million people currently receive this benefit.
The scheme offers a generous 50 per cent bonus on savings over a four-year period. This effectively means the government adds 50p for every £1 saved, with a maximum total bonus of £1,200.
The bonus is paid in two instalments to encourage consistent saving:
- A bonus is paid after two years based on the highest balance achieved.
- A final bonus is paid after four years, again calculated on the highest balance.
The account is designed to be flexible, with no penalties for making withdrawals, making it an accessible option for those who need to dip into their savings.
Access and Impact of the Scheme
Since its launch, the scheme has proven popular, with one in five customers choosing to open their Help to Save account directly via the HMRC app. Deposits can be made conveniently through several methods, including by debit card, standing order, or bank transfer.
Making the scheme permanent and broadening its reach signals a long-term commitment from the government to incentivise saving among those who need it most. This expansion will provide a vital financial cushion for hundreds of thousands of additional families, helping them build resilience against future economic shocks.
