Millions of people on low income eligible for UK Government bonus of up to £1,200
The 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.
In a written response to Conservative MP Blake Stephenson, who asked about the 'potential merits of extending the eligibility criteria for the Help to Save scheme', Ms Reynolds said: 'The Help to Save scheme promotes financial resilience among working people on low incomes by encouraging a regular, long-term savings habit and building a financial buffer to help people to plan and prepare for the future.
'The scheme is only available to working individuals in receipt of certain benefits. This ensures it is targeted at its intended population.
'The government has recently extended the eligibility criteria for the Help to Save scheme. From April 2025 it is available to all Universal Credit claimants in work, not just those earning over a certain amount. These changes mean that around 550,000 more people will be able to take advantage of the scheme, bringing the eligible population to 3 million.'
Help to Save in a nutshell
The Help to Save scheme enables people to 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Money can be withdrawn at any time, although this may affect the 50 per cent bonus payments.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.
App users can view their account, check their balance and bonus details, and make a deposit via debit card, bank transfer or standing order.
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.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Independent
10 minutes ago
- The Independent
Why millions of people could benefit from self-driving vehicles in the UK
A government minister has detailed the benefits of self-driving vehicles as a public consultation launches ahead of its roll-out in the UK next year. Launched today (July 21), the consultation on the automated passenger services (APS) permitting scheme will allow 'representative groups, industry stakeholders, trade unions and members of the public' to voice their opinions on how self-driving vehicles could be used. It comes ahead of the proposed roll-out of taxi-, private-hire- and bus-like services with self-driving technology from spring 2026, prior to the implementation of the Automated Vehicles Act in 2027. Lilian Greenwood, future of roads minister, said: 'Self-driving vehicles are one of the most exciting opportunities to improve transport for so many people, especially those in rural areas or unable to drive. We want to work with passengers and industry to make this new form of transport safe and accessible, as we take our next steps towards adoption. 'This technology doesn't just have the potential to improve transport for millions of people. It will help stimulate innovation, create thousands of jobs, and drive investment to put more money in people's pockets – all part of delivering our Plan for Change.' It follows on from a Government decision to 'fast-track' pilots of self-driving passenger vehicles to spring 2026, which would allow companies to pilot 'small-scale' services conducted without a safety driver monitoring the vehicle for the first time. Users would be able to book the service via an app, similar to a typical taxi or ride-hailing service. Key pointers for the consultation include how self-driving cars could be made more accessible for disabled and older people, and how 'services of self-driving vehicles are approved by councils'. The new consultation will run until September 28, 2025. When speaking on the roll-out of Self-driving taxis and bus-like services, transport Secretary Heidi Alexander said: 'The future of transport is arriving. 'Self-driving cars could bring jobs, investment, and the opportunity for the UK to be among the world-leaders in new technology. 'With road safety at the heart of our pilots and legislation, we continue to take bold steps to create jobs, back British industry and drive innovation.'
Telegraph
11 minutes ago
- Telegraph
The pensions crisis continues to swell out of control
The Government has launched another pensions review because too few people are saving enough for their retirement. With an ageing population this is set to become a crisis as time goes on. We know what is required without waiting for the conclusions of the commission revived by Liz Kendall, the Work and Pensions Secretary. The state pension needs to be secure and adequate, but also affordable, while the number of workers saving into a private pension needs to grow. Neither ambition is easy to achieve. The state pension age is set to rise again next year to 67 and then to 68; but with so many more people living for longer even this is hard to sustain. Another increase is on the cards. When the state pension was introduced in 1908, the qualification age was 70. The cost of maintaining the triple lock is hard to sustain against other competing spending demands. Private pensions are equally problematic. Around 20 per cent of private sector employees, and 80 per cent of self-employed workers, are not saving into a scheme. Moreover, of those saving in a 'defined contribution' arrangement, almost 40 per cent are set to have an inadequate retirement income. Increasing contributions is difficult since many working-age individuals are reluctant to forgo any more income. The middle classes are also saving less as high taxes and other uncertainties undermine faith in pensions. Reforms, including automatic enrolment, have succeeded up to a point but savings are still inadequate for a comfortable retirement. Once this country had a regime that was the envy of the world. Generous final salary schemes flourished until they were wrecked by Gordon Brown in one of his first acts as chancellor when Labour came to power in 1997. Furthermore, why are public sector pensions not included in this review? The liabilities are huge and the employees, including MPs and Whitehall officials, accumulate pension pots that are far greater than anything in the private sector. Greater equality is long overdue yet is absent from the review's terms of reference. The review is also contradicted by other Government policies. Rachel Reeves has already announced that pension pots will be subject to inheritance tax from 2027, thereby encouraging people to draw down on their savings or give money away. The autumn Budget will almost certainly include tax rises to offset the failure to reform welfare benefits. How will that encourage people to save?
Glasgow Times
14 minutes ago
- Glasgow Times
Inquiry into Afghan data leak to be conducted by Parliament's security watchdog
Lord Beamish, chairman of the Intelligence and Security Committee of Parliament (ISC), said the cross-party group would launch a probe after considering defence assessment documents related to the case. The peer has previously voiced concern over 'serious constitutional issues' raised by the handling of the breach that saw the details of 18,714 applicants for the Afghan Relocations and Assistance Policy (Arap) scheme released in 2022. The leak prompted an unprecedented superinjunction amid fears the Taliban could target would-be refugees for reprisals, meaning the ISC, which routinely reviews sensitive material, was not briefed. The ISC is made up of MPs and members of the House of Lords (PA) It also saw the establishment of a secret scheme, the Afghanistan Response Route (ARR), to bring some of those affected to the UK at a projected final cost of about £850 million. In a statement on Monday, Lord Beamish said the committee 'has agreed that, once it has considered the requested material, it will conduct an inquiry into the intelligence community's role and activity in connection with the loss of data relating to Arap applicants in February 2022'. The ISC, which is made up of MPs and members of the House of Lords, had asked for the release of defence assessments that formed the basis of the superinjunction, as well as other material relating to the Arap scheme. It hard argued that under the Justice and Security Act 2013, classification of material is not grounds on which information can be withheld from the committee, given its purpose is to scrutinise the work of the UK intelligence community. Thousands of Afghans included on the list of people trying to flee the Taliban are unlikely to receive compensation after their details were accidentally leaked. A spokesman for the Ministry of Defence (MoD) said the Government would 'robustly defend' any legal action or bid for compensation, adding these were 'hypothetical claims'. It has also been reported that the MoD will not proactively offer compensation to those affected. In total, the Government expects 6,900 people to be brought to the UK under the ARR scheme, which was introduced under the previous Tory administration after a defence official leaked the data 'in error' in February 2022. Along with the Afghan nationals, the breach saw details of more than 100 British officials compromised, including special forces and MI6 personnel. The Government has been contacted for comment.
