Budget boost of £1,200 for millions on Universal Credit and benefits as Help to Save scheme extended
MILLIONS of people on benefits could get a huge boost as a generous government savings scheme has been extended.
The government confirmed in its Budget documents, released today, that it will extend its Help to Save scheme by two years until April 2027.
The little-known savings tool gives people on benefits including Universal Credit and Working Tax Credit a bonus of 50p for every pound they save, up to a maximum bonus of £1,200.
All savings are secure as the scheme is backed by the government.
The government is also extending the scheme so all Universal Credit claimants who work are eligible.
Previously, you, or you and your partner, must have earned £722.45 or more from paid work in your last monthly assessment period to qualify.
It has launched a consultation today into how it will deliver the “reformed and improved” version of the scheme.
The scheme was first launched in 2018 and last year it was extended to April 2025, but it has been promoted on social media by HM Revenue & Customs (HMRC) recently in an effort to encourage greater take-up.
Figures from last October revealed almost 450,000 people opened a Help to Save between September 2018 and March 2023, with almost £372.5million paid into accounts.
But millions of people are on benefits including Universal Credit could be eligible for the scheme.
Consumer champion Martin Lewis, founder of Money Saving Expert, previously praised the scheme, saying: “If you know anyone on Universal Credit especially please do share this with them.
“It’s an unbeatable form of savings, that can add serious with no risk.”
The Budget documents today said: “The government will extend the
current Help to Save scheme until 5 April 2027.
“With effect from 6 April 2025, eligibility will be extended to all Universal Credit claimants who are in work.
“A delivery consultation, including details of a reformed and improved scheme, has been published alongside the Budget.”
The “trick and treat” Halloween Budget today included:
- A freeze to fuel duty for a 15th consecutive year in a win for The Sun’s Keep It Down campaign
- A penny off a pint by cutting draught beer duty, but raising booze taxes on other drinks
- A gloomy forecast of sluggish growth in a blow to Labour’s flagship mission
- A stamp duty rise for second-home buyers of two percentage points
- A pay rise for millions as the minimum wage was increased by £1,400 a year
- A hike to a packet of cigarettes as smoking duties were raised
- A new tax on vapes ahead of the looming ban on disposable e-cigs
- Higher taxes on air passenger duty for private jets that hits the wealthy
- A benefits crackdown with Ms Reeves telling jobless Brits to “get back to work”
- An increase to the state pension of £473 next year through the triple lock
- An inheritance tax raid through freezing the rates people pay
- An increase to the Carer’s Allowance to give cash to 60,000 more carers
How to apply for the Help to Save scheme
You can apply online for an account through the government website.
You need a Government Gateway user ID and password to open an account, which you can create one as part of your application if you don’t already have one.
When applying, you will be asked for your UK bank details so make sure you have them to hand.
Myrtle Lloyd, HMRC‘s Director General for Customer Services, has previously 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.”
Free cash schemes if you're struggling
Many of us are still struggling with the high cost of living - but there's help you can get.
New or expectant parents can get up to £442 a year to spend on food through Healthy Start scheme.
Some new parents can get £500 via the Sure Start Maternity Grant. The money is designed to help you cover the costs of having a child.
Councils also offer support through the welfare assistance schemes, to help cover the costs of essentials, from buying new furniture to food vouchers.
The amount you can get varies but an investigation by The Sun found that hard-up Brits can apply for help worth up to £1,000.
Discretionary Housing Payment is a pot of money handed out by councils to those struggling to keep a roof over their heads.
A scheme is available for those who find themselves unable to cover housing costs, though the exact amount varies as each local authority dishes out the cash on a case-by-case basis.
Many energy forms offer grants to help cash-tight customers. The exact amount varies depending on your supplier and you circumstances, but could be as much a £2,000.