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HM Revenue and Customs is enticing the public with the opportunity to boost their finances by up to £1,200 over four years through an advantageous scheme. HMRC took to social media platforms urging eligible individuals to register for the initiative.
The Help to Save programme has recently been made accessible to an additional 550,000 people who are employed and receive Universal Credit payments. Commenting on the expansion, HMRC stated: “More people than ever can sign up for Help to Save. For every £1 you save, the government adds 50p.” They added: “That could mean up to £1,200 in bonus payments over four years. Find out how to apply today through the HMRC app.”
Since its inception in 2018, Help to Save has handed out millions in bonuses to upward of half a million people and will continue offering its benefits until April 2027.
According to HMRC, 93% of account holders maximise their savings by consistently contributing the monthly cap of £50 into their Help to Save accounts. By saving the entire £2,400 throughout the four-year term, savers are rewarded with total bonuses amounting to £1,200, directly deposited into their bank.
These incentive payouts occur following the second and fourth years of account activity. Opening an account is a quick process, taking under five minutes, and once created, can be easily overseen via GOV.UK or the designated HMRC application.
The Help to Save initiative offers those on Working Tax Credit or Universal Credit the chance to save between £1 and £50 each month, with no obligation to make monthly contributions. Deposits can be made via debit card, standing order, or bank transfer, and there’s no limit to how many times you can pay in, as long as you don’t exceed the £50 monthly cap.
To join the scheme, people can apply by clicking here.
Money-saving expert Martin Lewis is championing the government’s Help to Save scheme, which rewards savers with a 50% bonus. He previously said: “So look in help to save. If you’re eligible for it, you can put up to 50 quid a month in over two years, and then at the end you get 50% of the highest amount in.
“So let’s just think of this. You put £50 in a month for a year, you’ve got 600 quid. You have a nightmare because this is all about building financial resilience and getting people to have some savings. You have a nightmare, your fridge is broken.”
He further explained the benefits: “You need it for the kids. You spend your 600 quid you can’t afford to put any more in. At the end of the two years, the highest amount you had in was £600. You get 50% of that, which is £300. So you get £300 and then whatever you’ve got in at that point, they do it again for the next two years, comparing what you have at the end with what you’re having at the beginning, and you get a 50% bonus.”
Almost half a million savvy savers have taken advantage of the Help to Save scheme since its inception in September 2018, pouring an impressive £372.5 million into their accounts, recent data shows. Myrtle Lloyd from HMRC praised the success of the initiative: “Hundreds of thousands of people are benefitting from Help to Save. It’s a great way of saving whatever you can and the government will top up your savings by 50%. It’s quick and easy to apply online or via the HMRC app. Just search ‘Help to Save’ on GOV.UK to find out more and apply today.”
Eligibility
You can open a Help to Save account if you’re receiving Universal Credit and you (with your partner if it’s a joint claim) had take-home pay of £1 or more in your last monthly assessment period.
Your take-home pay is your pay after deductions (such as tax or National Insurance).
If you get payments as a couple, you and your partner can apply for your own Help to Save accounts. You need to apply separately.
You also need to be living in the UK. If you live overseas, you can apply for an account if you’re either a:
- Crown servant or their spouse or civil partner
- member of the British armed forces or their spouse or civil partner
How payments work
You can save between £1 and £50 each calendar month. You do not have to pay money in every month.
You can pay money into your Help to Save account by debit card, standing order or bank transfer.
You can pay in as many times as you like, but the most you can pay in each calendar month is £50. For example, if you have saved £50 by 8 January you will not be able to pay in again until 1 February.
You can only withdraw money from your Help to Save account to your bank account.
How bonuses work
You get bonuses at the end of the second and fourth years. They’re based on how much you’ve saved.
What happens after 4 years
Your Help to Save account will close 4 years after you open it. You will not be able to reopen it or open another Help to Save account. You’ll be able to keep the money from your account.
You can close your account at any time. If you close your account early you’ll miss your next bonus and you will not be able to open another one.
