People on Universal Credit could be due bonus payment of up to £1,200 (2025)

More than half a million more people are in line for the savings boost.

HM Revenue and Customs (HMRC) has announced more than half a million more people on Universal Credit are in line for UK Government bonuses worth up to £25 a month to boost their savings pots and help ease rises in the cost of living.

As part of the UK Government’s mission to grow the economy, improve lives in every corner of the country and to deliver its Plan for Change, Help to Save is now open to anyone working and receiving Universal Credit, giving 550,000 more people the opportunity to save and earn a bonus, worth up to a maximum of £1,200 over four years.

Its extension to April 2027 means more people on a low income can benefit from the scheme, which has paid out millions of pounds in bonuses to more than 500,000 people since Help to Save was launched in 2018. Some 93 per cent of scheme users have paid in the maximum £50 every month to their Help to Save account.

In Scotland, 36,050 people have paid in a total of £33,584,000 into their Help to Save accounts, since September 2018.

An account can be set up in just a few minutes - you don’t have to deposit any money straight away - and easily managed through GOV.UK or the HMRC app, making it accessible to people throughout the UK.

Savers who deposit the maximum amount of £2,400 over four years will (£50 per month) receive a bonus totalling £1,200 into their bank accounts, with payments coming at the end of the second and final year.

Economic Secretary Emma Reynolds said: “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, said: “Thousands of customers have already benefitted from Help to Save and many more are now eligible to get a great return of 50 per cent on top of their savings, no matter how little you can save each month. Go online or via the HMRC app to find out more and apply today.”

Savers can deposit between £1 and £50 each month earning an extra 50 pence for every £1 saved, with bonuses paid in the second and fourth years of the account being opened.

Money can be withdrawn at any time, although this may affect the 50 per cent bonus payments. The bonus is determined by the highest amount held in the account.

Nearly 18,500 people opened a Help to Save account via the HMRC app in 2024. App users can view their account, check their balance and bonus details, and make a deposit via debit card, bank transfer or standing order.

Michelle Highman, Chief Executive of The Money Charity, said: “We are really pleased to see the Help to Save scheme extended and made available to more people. It's a brilliant way for people to start to save and to build their financial resilience and futures.

“Saving even just a little each month will help, and the added 50 per cent bonus payment from the Government means that if you are eligible, then it's a great place to boost your savings.”

Find out more about Help to Save at GOV.UK.

Help to Save in a nutshell

The Help to Save account is a state-operated scheme which millions of people on a low income, or claiming Universal Credit, could be eligible to join. In simple terms, for every £1 you put in you get a 50p bonus over a period of up to four years.

However, you can also take the money out from the account at any time, but there’s a catch - the bonus payout is based on the highest amount of money you put in.

Even if you’re not able to set aside money for savings at the moment, open an account anyway, while you are eligible to do so, because you don't have to put any money in.

How payments work

You can save between £1 and £50 each calendar month - you don’t have to pay in every month. Payments can be made 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. 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 - these are based on how much you have saved.

Example:

If you put £50 in each month for the first two years - a total of £1,200 - your first bonus payment would be for £600, even if you withdraw it all (but you would need to wait until the 24th month or the bonus payment would be less).

Similarly, if you then add £50 for the next two years, you would receive another £600 payment. This means that in total, you could earn a free £1,200 and if you kept the money in or the whole four years, you would receive an impressive £3,600 when the account closes.

What happens after four years?

Your Help to Save account will close four years after you open it. You will not be able to reopen it or open another Help to Save account. You can close your account at any time. If you close your account early you will miss your next bonus and you will not be able to open another one.

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

If you stop claiming benefits

You can keep using your Help to Save account.

Will it affect my benefit payments?

You can continue to receive Tax Credits or Universal Credit while saving with Help to Save.

For more information and to set up your Help to Save account, visit the GOV.UK website here.