Millions of people on lower incomes are being urged to check whether they qualify for a Government savings scheme that pays a 50% bonus, handing out up to £1,200. Experts say many households do not even know the support exists, despite the Treasury confirming it has now been made permanent. The Help to Save scheme offers a cash bonus to people on certain benefits and has already paid out more than £220million. Savings groups say the scheme is “hugely valuable”, especially during a period of rising costs.
The Treasury announced the update on November 26 and said the support will continue long-term. In a post on X, the department said: “The Government is announcing that it is making the Help to Save scheme permanent, helping millions on lower incomes to save and boost their financial resilience. Those eligible will receive a 50% bonus for every £1 they save over 4 years, a potential gain of £1,200.”
Help to Save is open to people receiving Universal Credit who had take-home pay of £1 or more in their last assessment period.
Savers can put away between £1 and £50 a month and receive a 50p bonus for every £1 they deposit.
Someone who pays in the maximum £2,400 over four years will earn a £1,200 top-up, paid directly into their bank account at the end of year two and year four.
HMRC said the bonuses are designed to help people build a safety net. Latest figures show 575,200 people have opened an account since the scheme launched in September 2018, with more than £588million saved so far.
Lucy Rigby, Economic Secretary to the Treasury, said: “The Government’s Help to Save scheme has boosted the savings of over half a million people across the country to the tune of £220million.
“We’re committed to helping families build financial resilience and putting more money in the pockets of working people.”
Financial advisers also welcomed the decision. David Stirling, from Mint Wealth, said the support is vital for households dealing with high bills.
He said: “Help to Save is an excellent way for lower-income families to build a financial cushion and strengthen their resilience. The 50% government bonus makes every pound saved go further.”
Money coach Benjamin Beck said the scheme proves people will save if given the right incentive. He said: “This is hugely positive and demonstrates the scheme works. I don’t think it’s advertised well enough though, as more people could benefit.”
Other experts say awareness is still far too low. Eamonn Prendergast, from Palantir Financial Planning, described Help to Save as “one of the best-kept secrets in personal finance” and warned that millions who qualify have never applied.
He said: “A 50% government bonus worth up to £1,200 is unbeatable, yet awareness remains low. Many eligible households don’t know it exists or assume it’s complicated, when it takes minutes to set up.”
However, some raised concerns about the overall cost. Anita Wright, from Ribble Wealth Management, said the support ultimately comes from taxpayers during a time of tight public finances.
She said: “While the scheme helps people on Universal Credit build savings, about 27% of the account value is taxpayer-funded. It is not cost-free, and the UK is already running high deficits.”
Help to Save accounts can be opened online through GOV.UK. Officials say the aim is to help more people put aside small amounts each month and build long-term financial stability. Read more about the scheme here.