The Help to Save account has been extended to April 2027, potentially earning people more than £500
HMRC has announced an extension to the Help to Save account until April 2027, a government initiative designed to encourage those on Universal Credit earning £1 or more each month to save money. The scheme allows people to save up to £50 per month, with the government providing a monthly top-up based on the amount saved.
If the maximum £50 is put away, the bonus will be £25 from the government each month, according to the Daily Record. More than half a million people are already set to receive the bonus and it’s estimated that thousands more are eligible to open an account. Among current account holders, 93% consistently save the maximum £50 each month.
Although the bonus is calculated monthly, it is distributed as two tax-free bonuses over a four-year period. These bonuses are determined by the highest balance saved during the first two and last two years of the account.
The maximum contribution to the account each calendar month is £50, totalling £2,400 over four years. The maximum bonus that can be earned from savings over this period is £1,200.
After four years, the account will close, but if still eligible, another Help to Save account can be opened. However, closing the account prematurely will prevent the opening of another one.
If your benefits stop, the Help to Save account can continue to be used until its closure. Setting up an account takes just a few minutes if you meet the criteria, and there’s no requirement to make an immediate deposit.
The process can be completed entirely online through Gov.uk or via the HMRC app. You’ll need several documents to hand when applying, including a current UK passport, details from your credit history, and your banking information.
Funds can be withdrawn from the account whenever necessary. However, failing to increase your highest balance between the initial and second payment means you’ll miss out on the final bonus. The bonus payment goes directly to your regular bank account rather than into your Help to Save account.
Economic Secretary Emma Reynolds commented: “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, added: “Thousands of customers have already benefited 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.”
The Help to Save scheme was first launched in September 2018 and was originally scheduled to conclude in September 2023. In April 2025, the programme received an extension until April 2027. To qualify for a Help to Save account, you must be a recipient of Universal Credit and have earned at least £1 in take-home pay during your most recent monthly assessment period.
Additionally, you must reside in the UK unless you’re a Crown servant or a member of the British armed forces. It’s important to bear in mind that due to the Universal Credit eligibility requirements, any funds in a Help to Save account contribute towards the £6,000 savings cap imposed on recipients. However, as long as you stay within this limit, the account won’t impact your benefit payments.