On Mar. 12, 2025, UK HMRC published policy paper tax information and impact note on amendment to the universal credit eligibility criteria for Help to Save accounts.
The change will expand the scheme’s eligibility to all working individuals in receipt of universal credit, earning £1 or more, with new changes take effect from Apr. 6, 2025.
The measure removes existing earnings threshold for universal credit claimants, which was set at the equivalent of 16 hours a week at the National Living Wage.
By extending eligibility to include all universal credit claimants in work, not just those earning above a threshold, scheme will be accessible to more households in need.
Measure aligns with the government’s aim to enhance financial inclusion of low-income households and provide targeted support to help them withstand financial shocks.
Follows announcement at Autumn Budget 2024 that, Help to Save has been extended on its current terms until Apr. 2027, see #231484.
On May 23, UK HMRC announced scheme extended until Apr. 2025.
UK HMRC confirmed that the Help to Save scheme has been extended until Apr. 2025.
Follows UK Treasury, HMRC Mar. 2023 issued spring budget measures, see #166241.
Scheme Details
Help to Save savings scheme is open to people receiving benefits including working tax credit, child tax credit and universal credit, and offers a generous savings bonus. Scheme is for low-income earners with 50% bonus worth up to £1,200 over 4 years.
Savers can deposit £1-£50/month and receive a bonus even if money withdrawn.
Savers earn 50p bonus for every £1 saved; bonus payments paid in 2nd and 4th yrs.
regarding the bonus payments, after the first 2 years, customers will get a first bonus if they have been using their account to save; bonus is 50% of highest balance saved.
After 4 years, customers get final bonus if they continue to save, at 50% of difference between highest balance saved in first 2 years and the highest saved in last 2 years.
If their highest balance does not increase, they will not earn a final bonus.
The bonus is paid into their bank account, not their Help to Save account.
Help to Save was launched in Sep. 2018 and was due to end in Sep. 2023 but it has been extended until Apr. 2025., as announced at Spring Budget on Mar. 15, 2023.
Mar. 2025 Universal Credit Eligibility
On Mar. 12, 2025, UK HMRC published policy paper tax information and impact note on amendment to the universal credit eligibility criteria for Help to Save accounts.
The change will expand the scheme’s eligibility to all working individuals in receipt of universal credit, earning £1 or more, with new changes take effect from Apr. 6, 2025.
The measure removes existing earnings threshold for universal credit claimants, which was set at the equivalent of 16 hours a week at the National Living Wage.
By extending eligibility to include all universal credit claimants in work, not just those earning above a threshold, scheme will be accessible to more households in need.
Measure aligns with the government’s aim to enhance financial inclusion of low-income households and provide targeted support to help them withstand financial shocks.
Follows announcement at Autumn Budget 2024 that, Help to Save has been extended on its current terms until Apr. 2027, see #231484.
