Positive news has emerged for savers on lower incomes as the popular 'Help to Save' scheme has been extended until April 2027. Alongside the extension, a major change to eligibility rules means an estimated 550,000 additional people are now able to open an account, primarily impacting those receiving Universal Credit.
It represents a major recommitment from the UK Government, with the scheme now offering a longer window and broader access to its core benefit: a potential £1,200 tax-free government bonus on savings.
Following the announcement, HMRC has urged potentially eligible individuals to investigate the scheme, particularly those who may have previously checked and found they didn't qualify.
What is the Help to Save scheme?
The Help to Save scheme offers a generous 50% government bonus on the money saved in the scheme over four years. You can save between £1 and £50 each month. Those saving the maximum £50 per month can earn a total bonus of £1,200 and bonuses are paid after year 2 and year 4.
In terms of the scheme's uptake and engagement, statistics reveal:
- Accounts Opened - Over 516,800 accounts had been opened by the end of April 2024
- Total Deposits - Savers had deposited a total value of over £492 million into these accounts by April 2024
- High Engagement - 93% of savers consistently deposit the maximum £50 each month
While the figures show significant participation, the total number of accounts opened remains considerably lower than the estimated number of eligible individuals (potentially around 3 million or more under the expanded criteria). For full details on how the scheme works, see our comprehensive Help to Save guide.
Help to Save scheme extended to April 2027
The Help to Save scheme, which was due to end in April 2025, has now received a further two-year extension, meaning it is guaranteed to be in place until April 2027.
This latest extension to 2027 ensures that anyone opening an account now - or in the near future - will be able to participate for the full four-year duration and potentially earn both bonus payments.
Help to save scheme eligibility expanded: Who's newly eligible?
The most significant aspect of the recent announcement is the expansion of eligibility criteria, particularly for claimants of Universal Credit (UC). Effective from April 2025, the requirement for UC claimants to meet a specific minimum earnings threshold has been removed. Eligibility for those receiving Working Tax Credit remains unchanged.
The new rule states that anyone receiving Universal Credit simply needs to have earned at least £1 from employment or self-employment during their last monthly assessment period to qualify for Help to Save. This replaces the previous, much stricter rule, which required earnings equivalent to working 16 hours per week at the National Living Wage, or much higher specific income thresholds.
The change is expected to make approximately 550,000 more individuals eligible. Those likely to benefit include people working very few hours, individuals on zero-hours contracts, the self-employed with low or variable profits, or anyone whose earnings previously fell below the required threshold. The total number of people potentially eligible for the scheme under the new rules is estimated to be around 3 million.
Who can qualify for the Help to Save scheme?
With the recent extension and eligibility changes, individuals are strongly encouraged to check if they can now benefit from the Help to Save scheme. This is particularly important for Universal Credit recipients who may have been ineligible under the previous earnings rules. We explain the eligibility criteria below.
Help to Save scheme eligibility criteria
- Individuals receiving Working Tax Credit.
- Individuals receiving Universal Credit AND who earned £1 or more from work (employment or self-employment) in their last monthly assessment period.
Potential applicants can check their eligibility and apply directly through the GOV.UK website or by using the HMRC app. The application process should be relatively quick, often taking less than five minutes.
Check your eligibility and how to apply
The extension to April 2027 and the expansion of eligibility mean an estimated 550,000 additional people can benefit from the Help to Save scheme. It means those on a low income can help to build a savings pot with the help of a generous 50% government bonus, worth up to £1,200 over four years.
Read our comprehensive Help to Save guide for more information on how the scheme works, including the latest changes to eligibility and how to apply or you can visit the GOV.UK website.
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