HMRC to expand eligibility for little-known Universal Credit boost worth £1,200

The Help to Save scheme, which provides Universal Credit claimants with a cash boost of up to £,1200, will be expanded next year, the government has announced.

In today's Autumn Budget, chancellor Rachel Reeves confirmed the savings scheme will be extended until April 2027, after it was originally due to end in April next year.

She also confirmed that eligibility for the scheme would be expanded so that all working Universal Credit claimants will be eligible to open an account.

READ MORE: Martin Lewis spots 'bad news' for Child Benefit claimants hidden in Budget

Savers on the Help to Save scheme can put away between £1 and £50 a month, and will be paid a government bonus of 50 per cent after year two and year four. So 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.

Currently, to be eligible for a Help to Save account, Universal Credit claimants must have received take-home pay of £793.17 or more during their last assessment period.

But from April 2025, the scheme will be open to "all working Universal Credit claimants earning at least £1 a month", the government said.

In the full Budget document published today, the government added: "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 scheme was first launched in 2018 and last year it was extended to April 2025. The latest HMRC data, up to March last year, showed that nearly 450,000 people had opened an account.

People can check their eligibility and open an account on gov.uk or using the HMRC app. People on working tax credits and child tax credits may also be eligible for an account.