Half a million Universal Credit claimants due £25 cash boost
The account is exclusive to people receiving Universal credit and earning £1 or more per month
Thousands may not realise they're eligible for the account which can add a £25 boost every month
(Image: GETTY )
HMRC has confirmed that the Help to Save account will be extended to April 2027. It's a savings account exclusively for people on Universal Credit earning £1 or more each month.
It allows people to save up to £50 per month, and the government adds a top-up each month depending on how much you save. If you save the maximum, the bonus will add £25 back into people's pockets each month, according to the Daily Record.
More than half a million people are already in line for the bonus and the government estimates thousands more are still eligible to open the account. Of those already saving into the account, 93% put away the maximum £50 every month.
The bonus is compiled each month but is paid out in two tax-free bonuses over four years. The bonuses are based on the highest balance you saved during the first two and last two years.
The most you can pay into your account each calendar month is £50, which is £2,400 over 4 years. The most you can earn from your savings in 4 years is £1,200 in bonus money.
After four years, the account will close, but you can open another Help to Save account if you're still eligible. However, if you close your account early, you won't be able to open another one. If your benefits stop, you can keep using your Help to Save account until it closes.
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It takes a few moments to open the account if you're eligible and you don't have to deposit any money straight away. It can be opened and managed through Gov.uk or the HMRC app. You'll need some documents to open the account, including a valid UK passport, information on your credit record and your bank details.
You can still withdraw money from the account if you need it at any time. However, if your highest balance doesn't increase between the first and second payment, you won't get a final bonus. The bonus will be paid into your bank account, not your Help to Save account.
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 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.'
Help to Save was initially launched in September 2018 and was meant to end in September 2023. In April 2025, it was extended to April 2027.
To be eligible for a Help to Save account, you must be receiving Universal Credit and have £1 or more in take-home pay during your last monthly assessment period. You must also be living in the UK unless you are a Crown servant or member of the British armed forces.
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It's important to note that because of the Universal Credit eligibility criteria, Help to Save counts as part of the £6,000 savings limit applied to recipients. But if you steer clear of this limit, the account won't affect your benefit payments.
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