Millions of Universal Credit claimants could get a £600 a year boost to their savings, HMRC has confirmed.

The Help to Save scheme, a government initiative which encourages those on benefits to save money, has been extended until April 2025.

More than 359,200 customers have opened savings accounts since its launch in September 2018 and an additional 3 million individuals could still benefit from the savings scheme as a result of the extension.

Under the Help to Save scheme, for every £1 you put in to your Help to Save account, the government will boost it by 50p up to a certain amount.

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If you put £50 each month until the scheme ends in April 2025, you would get £600 back in boosted funds from the government.

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, said: “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.”

Who is eligible for Help to Save?

Setting up a Help to Save account online is quick and easy to do, and takes less than 5 minutes to sign up.

You can open a Help to Save account if you’re receiving:

  • Working Tax Credit
  • Child Tax Credit – and you’re entitled to Working Tax Credit
  • Universal Credit and you (with your partner if it’s a joint claim) had take-home pay of £658.64 or more in your last monthly assessment period

If you get payments as a couple, you and your partner can apply for your own Help to Save accounts. You need to apply separately.

Saving money though a Help to Save account could affect your eligibility for certain benefits and how much you get.

The Department for Work and Pensions guidance explains: “If you or your partner have £6,000 or less in personal savings this will not affect how much Universal Credit you get. This includes any savings in your Help to Save account.

“Your Help to Save bonuses will not affect your Universal Credit payments.

“Any savings or bonuses you earn through Help to Save will not affect how much Working Tax Credit you get.

“If you or your partner have £6,000 or less in personal savings this will not affect how much Housing Benefit you get. This includes any savings in your Help to Save account.”