Millions earning more than £1 a month could get cash boost of up to £1,200

The government has announced plans to expand the Help to Save scheme, which offers Universal Credit claimants a cash boost of up to £1,200. In her autumn Budget statement, chancellor Rachel Reeves confirmed that the savings scheme, originally set to end in April next year, will now be extended until April 2027.

Eligibility for the scheme will also be broadened to include all working Universal Credit claimants. Under the Help to Save scheme, savers can deposit between £1 and £50 per month, receiving a government bonus of 50% after the second and fourth years.

This means that someone saving the maximum amount of £2,400 over four years would receive a £1,200 bonus from the government, paid directly into their bank account. At present, to qualify 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.

However, from April 2025, the scheme will be open to "all working Universal Credit claimants earning at least £1 a month", according to the government. The full Budget document published today also stated: "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 initiative was initially introduced in 2018 and was recently extended until April 2025. The most recent data from HMRC, up to March of the previous year, revealed that close to 450,000 individuals had opened an account, reports the Manchester Evening News.

Eligibility can be checked and accounts can be opened on gov.uk or via the HMRC app. Those receiving working tax credits and child tax credits may also qualify for an account.