More than half a million additional UK savers can now receive Government bonuses worth up to £25 monthly to boost their savings and help with rising living costs, HM Revenue and Customs (HMRC) has announced.
The Help to Save scheme has been expanded to include anyone working and receiving Universal Credit payments, making 550,000 more people eligible.
The initiative is part of the Labour Government's mission to grow the economy and improve lives across the UK through its Plan for Change.
Since launching in 2018, the scheme has paid millions in bonuses to over 500,000 people and has now been extended until April 2027 in a boon for prospective savers.
Savers can get a 50 per cent boost via the the Help to Save scheme
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HMRC reports that 93 per cent of savers are depositing the maximum £50 every month into their Help to Save accounts. Savers who deposit the full £2,400 over the four-year period will receive bonuses totalling £1,200 paid into their bank accounts.
These bonus payments are made at the end of the second and fourth years after opening an account. Setting up an account takes less than five minutes and can be managed through GOV.UK or the HMRC app.
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."
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HMRC has provided an update on the Help to Save account
PAThe scheme allows savers to deposit between £1 and £50 each month. For every pound saved, the government adds an extra 50 pence as a bonus.
This represents a 50 per cent return on savings, significantly higher than standard interest rates. Nearly 18,500 people opened a Help to Save account via the HMRC app in 2024. App users can view their account, check their balance and bonus details at their fingertips.
Deposits can be made via debit card, bank transfer or standing order. The bonus payment applies to the highest amount saved within each two-year period.
Money can be withdrawn at any time, although this may affect the 50 per cent bonus payments. The scheme has been designed to be accessible to people throughout the UK.
Myrtle Lloyd, HMRC's Director General for Customer Services, said: "Thousands of customers have already benefitted 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."
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The Help to Save account offers a 50 per cent bonus on the savings PAMichelle Highman, the chief executive of The Money Charity, welcomed the expansion.
She said: "We are really pleased to see the Help to Save scheme extended and made available to more people. It's a brilliant way for people to start to save and to build their financial resilience and futures."
"Saving even just a little each month will help, and the added 50 per cent bonus payment from the Government means that if you are eligible, then it's a great place to boost your savings."
