On Mar. 12, 2025, UK Treasury issued the Help-To-Save Accounts Regulations 2025 in StIn 2025/327, amending Help-to-Save Accounts Regulations 2018 (StIn 2018/87).
Makes amendments to paras (3)(b) and (6)(d) of regulation 3 of the 2018 Regulations.
Paragraph (3)(b) of the 2018 regulations is amended in respect of the eligibility criteria for Help-to-Save accounts for Universal Credit claimants so that the new requirement is that all claimants must earn at least £1 in the period specified in paragraph (3)(b).
Paragraph (6)(d) is amended to remove the reference to the national living wage rate.
The Help-To-Save Accounts Regulations 2025 all now come into force on Apr. 6, 2025.
UK Treasury consulted on how Help to Save scheme can be reformed and simplified.
Measure formed part of 2023’s tax administration and maintenance day (TAMD).
Follows UK Treasury, HMRC Mar. 2023 issued spring budget measures, see #166241.
Aims
Help to Save scheme is for working people on low incomes who claim certain benefits.
Treasury believes the scheme could be made simpler by reforms to how its bonus is calculated, the length of time an account can be open for, and eligibility requirements.
Help to Save was launched in 2018 and allows certain people entitled to Working Tax Credit or receiving Universal Credit to get a bonus of 50p for every £1 they save.
Accounts can be open for 4 years, and can save a maximum of £50 every month.
Want to encourage more people to open accounts, enhancing long-term saving habits.
At Spring Budget, the government announced that the Help to Save scheme (originally due to close to new accounts in September 2023) will be extended by 18-months, on its current terms, until April 2025 and that it would consult on reforms to the scheme.
Consultation seeks stakeholders' views on how scheme could be reformed, simplified.
To ensure it has longevity as key savings product for working people on low incomes.
Encourages take-up in the target group; and provides the best value for taxpayers.
Effectiveness
Consultation closes Jun. 22, 2023, 11:45pm.
Oct. 2024 Consultation Feedback
On Oct. 30, 2024, UK Treasury published the feedback from the Help to Save scheme that was launched in Apr. 2023, to seek views on how the scheme could be reformed.
Views were sought from stakeholders on effectiveness of Help to Save as a key savings product for low-income working people, encouraging uptake within the target group.
Also, how to provide the best value for taxpayers on the way that the scheme works.
Feedback from the consultation and all additional stakeholder engagement has been carefully considered and UK GVT developed a framework for reformed scheme design.
Consultation invited views from financial institutions, including banks, building societies and credit unions, to understand interest in delivering reformed Help to Save scheme.
Publication details a new consultation to inform final approach to delivering a scheme.
UK GVT intends holding a number of co-creation workshops during course of delivery consultation to provide an opportunity for financial institutions to participate, and will engage in open discussions, offering attendance through all the relevant trade bodies.
This new consultation process will now run from Oct. 30, 2024, until Jan. 22, 2025.
Mar. 2025 Legislation Passed
On Mar. 12, 2025, UK Treasury issued the Help-To-Save Accounts Regulations 2025 in StIn 2025/327, amending Help-to-Save Accounts Regulations 2018 (StIn 2018/87).
Makes amendments to paras (3)(b) and (6)(d) of regulation 3 of the 2018 Regulations.
Paragraph (3)(b) of the 2018 regulations is amended in respect of the eligibility criteria for Help-to-Save accounts for Universal Credit claimants so that the new requirement is that all claimants must earn at least £1 in the period specified in paragraph (3)(b).
Paragraph (6)(d) is amended to remove the reference to the national living wage rate.
The Help-To-Save Accounts Regulations 2025 all now come into force on Apr. 6, 2025.
