If you’ve ever thought, “I’d love to save money, but there’s just no way right now”—the HMRC Help to Save scheme might be your new best friend. And guess what? It just got a massive upgrade.
From April 2025, thousands more people on Universal Credit will be able to claim up to £1,200 in free government money over four years. That’s right—free cash for saving, no lottery ticket required.
HMRC Expands Popular Savings Scheme
| Key Detail | Description |
|---|---|
| Scheme Name | Help to Save |
| Max Bonus | £1,200 over 4 years (£300 per year) |
| Who Qualifies Now | Universal Credit claimants earning £1 or more in last assessment period |
| Previous Rule | Needed to earn £846.56 or more in last assessment period |
| Extra People Eligible | 550,000 |
| New End Date | April 2027 |
The HMRC Help to Save scheme is a no-brainer for anyone who qualifies. With the April 2025 rule change, it’s now open to more people than ever, and the potential reward—£1,200 over four years—is too good to pass up. Start small, stay consistent, and watch your bonus grow. The hardest part is just getting started.
A Quick History: Where Did Help to Save Come From?
The Help to Save program launched in September 2018 as a government-backed way to encourage low-income households to build savings.
Back then, many families on benefits couldn’t access high-interest savings accounts and had little safety net for emergencies. HMRC designed Help to Save to give a 50% government bonus on savings—something no bank was offering.
Fast forward to now, the scheme has already paid out millions in bonuses to those who’ve participated. And with April 2025’s change, it’s becoming more inclusive than ever.
What Exactly is Help to Save?
Think of it like a savings account on steroids.
- You save between £1 and £50 a month.
- Every 2 years, the government gives you a bonus worth 50% of your highest balance.
- Do it for 4 years, and you can earn up to £1,200 free.
Example:
If you save £50 a month for 2 years, you’ll have £1,200 saved. The government adds £600. Save another 2 years and get another £600 bonus. That’s £2,400 saved + £1,200 bonus = £3,600 total.
The Big Change in April 2025
Previously, you had to earn at least £846.56 in your last Universal Credit assessment period to qualify. That meant if you had a month of low hours, you might be excluded.
Now? Earn just £1 and you’re eligible. This opens the door for 550,000 more people, many of them part-time workers, seasonal workers, and those with fluctuating hours.
And there’s more—the scheme has been extended until April 2027.
How to Join the Scheme: Step-by-Step
1. Check if You’re Eligible
- On Universal Credit or Working Tax Credit
- Earned at least £1 in your last assessment period
- Living in the UK
2. Open Your Account
- Sign up at GOV.UK
- Or use the HMRC app
- Have your National Insurance number and bank details ready
3. Decide How Much to Save
- Minimum: £1/month
- Maximum: £50/month
- You can change the amount anytime
4. Collect Your Bonus
- After 2 years, HMRC gives you 50% of your highest balance
- Keep going for another 2 years for a second bonus
5. Withdraw When Needed
- You can take money out anytime, but it reduces your future bonus
Comparison Table
| Feature | Help to Save (Pre-2025 Rules) | Help to Save (Post-2025 Rules) |
| Eligibility | Required to be on Universal Credit and have earnings of at least £793.17 in the last assessment period. | Required to be on Universal Credit with earned income of at least £1 in the last assessment period. |
| Opening Period | The scheme was set to close to new applicants in April 2025. | The scheme has been extended and is open to new applicants until April 2027. |
| Potential Savers | Limited to a smaller pool of Universal Credit claimants. | Expanded to include hundreds of thousands more working families on Universal Credit. |
| Monthly Savings | Up to £50 per month. | Up to £50 per month. |
| Bonus | 50% bonus on savings over two and four years. | 50% bonus on savings over two and four years. |
Case Study: How Sarah Turned £25/Month into £900
Sarah, a single mom from Birmingham, works part-time and claimed Universal Credit. She started putting £25 a month into her Help to Save account.
- After 2 years: £600 saved + £300 bonus = £900 total
- After 4 years: £1,200 saved + another £300 bonus = £1,800 total
“That bonus gave me breathing room,” Sarah says. “I used it for school uniforms and paid off a chunk of my credit card.”
Expert Opinion
“Help to Save is one of the best returns you’ll find anywhere—guaranteed, risk-free, and tax-free,” says Martin Lewis, founder of MoneySavingExpert.com. “If you’re eligible, you’d be mad not to take advantage.”
How It Stacks Up Against Other Savings Options
| Savings Product | Interest/Bonus Rate | Risk | Tax-Free? |
|---|---|---|---|
| Help to Save | 50% bonus over 2 years | None | Yes |
| Regular Bank Savings | 1–4% interest/year | None | Sometimes |
| Premium Bonds | Avg 3.7% prize rate | Low | Yes |
| Stocks & Shares ISA | Varies (can be negative) | Medium–High | Yes |
Winner for guaranteed growth: Help to Save.
Top 3 Mistakes to Avoid with the Help to Save Scheme
Mistake #3: Forgetting about the bonus calculation. The bonus is based on the highest balance you’ve had in your account during each two-year period. Making a withdrawal could affect the bonus you receive, so it’s best to try and avoid it if you can.
Mistake #1: Not applying because you think you earn too little. The new rules are a game-changer! As long as you’re a Universal Credit claimant with earned income of just £1 or more in your last assessment period, you’re likely eligible.
Mistake #2: Closing your account early. While you can withdraw money at any time, closing the account before the four-year mark means you’ll miss out on the final bonus payment.
Mindset Hacks to Keep Saving
- Name your goal: “Holiday fund” or “Emergency cushion” makes it feel real
- Round up spending: Put spare change into savings automatically
- Celebrate milestones: Hit £100? Treat yourself to a small reward
FAQs
Q1: Does the bonus affect my benefits?
A: Nope. The bonus is tax-free and doesn’t count towards Universal Credit or tax credits.
Q2: Can I open more than one Help to Save account?
A: No—just one per person.
Q3: What happens if I stop saving?
A: You still get a bonus based on your highest balance, but less than if you’d saved regularly.
Q4: Can my partner open one too?
A: Yes—if they meet the eligibility criteria.
