A government scheme which encourages people to save and offers an extra £1,200 payment for free has been extended. HM Revenue and Customs (HMRC) has said that the Help to Save scheme will now go on until April 2025. It had been due to end in September 2023
It is estimated that an extra three million people could sign up to it, with more than 350,000 already having benefited. It is aimed at low income earners and helps them to put some money away which is then boosted by the government.
Savers can deposit between £1 and £50 a month into their account and will receive a government bonus– even if money has been withdrawn. Savers will earn a 50 pence bonus for every £1 saved and the bonus payments are paid in the second and fourth years.
This means that someone saving £2,400 - the maximum amount they could deposit over four years - would receive a £1,200 bonus from the government, paid directly into their bank account.
Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “Help to Save can encourage positive saving habits – no matter what you can afford to save – and the 50% government bonus payment can help savers when they need it most.”
“It is quick and easy to apply online or via the HMRC app, just search ‘help to save’ on GOV.UK to find out more.
Andrew Griffith, Economic Secretary to the Treasury, added: “Millions of people could benefit from a boost to their savings through Help to Save and thanks to our Spring Budget reforms the scheme has been extended until 2025.”
Whatever amount you can save will trigger a top up from the Government, so take advantage and apply today.”
Individuals can open a Help to Save account if, when they apply, they are receiving:
- Working Tax Credit
- Child Tax Credit and are entitled to Working Tax Credit
- Universal Credit and they (with their partner, if it is a joint claim) had take-home pay of £722.45 or more in their last monthly assessment period.
Accounts are open for a maximum of 4 years and individuals can make deposits as many times as they like by debit card, bank transfer or standing order, without going over the monthly saving limit of £50. Individuals can also withdraw money at any time, although this may affect their 50% bonus payments.
Accounts are open for a maximum of 4 years and individuals can make deposits as many times as they like by debit card, bank transfer or standing order, without going over the monthly saving limit of £50. Individuals can also withdraw money at any time, although this may affect their 50% bonus payments.
For more information about Help to Save click here. This guide is also available in Welsh (Cymraeg).
