**Universal Credit Claimants Set to Benefit from Government’s Cash Boost Scheme**
More than half a million people receiving Universal Credit are now eligible for savings bonuses under the government’s Help to Save programme, with thousands more claimants still potentially able to take advantage of the scheme. The initiative offers those on a low income the opportunity to secure an extra £25 each month, a measure aimed at supporting working families during turbulent economic times.
The Help to Save scheme, originally launched in 2018, has been extended by HM Revenue & Customs (HMRC) until April 2027 following widespread calls for ongoing support. Designed for those on Universal Credit with earnings of at least £1 per month, the programme encourages people on modest incomes to develop regular saving habits by rewarding them with government-backed bonuses.
Eligible users can deposit up to £50 each month into their Help to Save accounts. In return, the government tops up their savings by 50%, which equates to a maximum bonus of £25 monthly for those saving the full amount. Impressively, recent figures indicate that 93% of scheme participants save the maximum permitted, highlighting the popularity and perceived value of the initiative.
While the monthly bonus is calculated on an ongoing basis, the actual payment is made in two tax-free instalments spread over four years. The total possible bonus an individual can accrue throughout the lifetime of their account is £1,200 on a total of £2,400 saved. Once the four-year period concludes, the account closes automatically. However, claimants who continue to meet the eligibility criteria may reapply and open a new account.
Applying for a Help to Save account is designed to be straightforward, with applications available via GOV.UK or the dedicated HMRC app. Essential information required for the application process includes a valid UK passport, a recent credit record, and current bank details. One noteworthy aspect of the programme is its flexibility, as claimants are not obliged to make an immediate deposit when opening an account and are permitted to withdraw funds at any time if needed.
Nevertheless, account holders should be mindful of how withdrawals might impact their bonus. If the running balance does not increase between the first and second calculation periods, the final bonus may not be paid in full. Importantly, all bonuses are transferred directly into the account holder’s bank account, not the Help to Save account itself.
Economic Secretary to the Treasury, Emma Reynolds, commented on the extension: “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.” Myrtle Lloyd, HMRC’s Director General for Customer Services, echoed these sentiments, urging people to check their eligibility and highlighting the appeal of receiving a 50% return on every pound saved.
Individuals in the UK seeking to benefit from Help to Save must be receiving Universal Credit with at least £1 of take-home pay in their last assessment period. Those living abroad may also qualify if they are a Crown servant or a member of the British armed forces stationed overseas. However, there are important rules to bear in mind: balances held in Help to Save accounts are considered as part of Universal Credit’s £6,000 capital threshold for savings, so claimants need to be cautious not to inadvertently affect their benefit payments.
The Help to Save project emerged during a period of intense economic uncertainty, and its extension is widely welcomed by consumer advocates as a practical approach to financial resilience for low-income households. For many, even modest savings can make a tangible difference, particularly in the face of rising living costs, and the government’s ongoing commitment to supporting claimants’ financial health is seen as an important step.
Further information about the Help to Save scheme, including full eligibility requirements and instructions on how to apply, can be found online at GOV.UK or through the HMRC app. With the scheme set to continue until 2027, experts are encouraging all eligible Universal Credit recipients to explore whether this valuable savings boost could benefit them and their families.