£300 Cost of Living 2025 Confirmed: Managing money has become harder for many people due to the rising cost of living. To support families during this time, the UK Government has expanded its Help to Save scheme. This smart savings plan is now available to over 550,000 more working people who are getting Universal Credit. If you’re eligible, this scheme can help you build savings with a special bonus from the Government.
Let’s break down what the scheme is, how it works, and why it’s a great way to boost your savings.
What Is the Help to Save Scheme?
Help to Save is a Government-backed savings account aimed at helping low-income workers. It rewards people who can save even small amounts of money each month. You can save between £1 and £50 every month, and in return, the Government gives you 50p for every £1 you save.
That means if you save the full £50 per month, you get a £25 bonus. Over four years, if you save £2,400 in total, the Government will give you £1,200 as a bonus.
Who Can Apply?
This scheme is now open to anyone who:
- Is working
- Is receiving Universal Credit Earlier, only those earning at least 16 hours a week at National Living Wage and getting Tax Credits or Universal Credit were eligible. Now, the doors are open to many more.
How the Bonuses Work
The bonus isn’t paid monthly—it comes in two stages:
- After 2 years: You’ll get 50% of the highest amount you managed to save during that time.
- After 4 years: You’ll get another 50%, but only if you saved more than you did in the first two years.
For example, if you saved £1,000 in the first two years and then increased that to £1,400 in the next two years, you’d get a bonus of £200 in the final round (50% of the £400 difference).
Easy to Open and Use
Setting up a Help to Save account takes less than 5 minutes. You can do it through the GOV.UK website or through the HMRC app. Once your account is active, you can deposit money through your bank card, a standing order, or bank transfer. You can also check your balance and bonus details anytime on the app.
If you ever need to withdraw money, you can—but keep in mind, it might reduce your final bonus.
Big Impact So Far
Since the scheme started in 2018:
- Over 516,000 people have opened accounts.
- Savers have deposited nearly £492 million across the UK.
- Most users (93%) save the full £50 every month.
With the new extension until April 2027, even more people now have a chance to benefit.
Further Information
- Latest statistics on Help to Save up to April 2024 were released in September 2024
| Number of Accounts Opened to end-April 2024 | Total value of deposits | |
|---|---|---|
| UK Total | 516,800 | £492,539,000 |
| England | 439,900 | £420,318,000 |
| North East | 22,750 | £20,668,000 |
| North West | 67,650 | £63,479,000 |
| Yorkshire and The Humber | 49,600 | £47,043,000 |
| East Midlands | 43,000 | £41,219,000 |
| West Midlands | 49,550 | £46,130,000 |
| East of England | 44,900 | £43,176,000 |
| London | 55,550 | £52,935,000 |
| South East | 60,500 | £57,563,000 |
| South West | 46,400 | £48,106,000 |
| Wales | 24,850 | £23,683,000 |
| Scotland | 36,050 | £33,584,000 |
| Northern Ireland | 15,650 | £14,700,000 |
Why This Scheme Matters
Emma Reynolds, the Economic Secretary to the Treasury, said the scheme is part of the Government’s “Plan for Change” to offer more security to working people. She explained that this plan helps families have something saved up for unexpected situations.
Myrtle Lloyd from HMRC also shared that many people are already seeing great benefits from Help to Save. She encouraged more people to check if they are eligible and to apply quickly.
Michelle Highman from The Money Charity also praised the move, saying it’s a great way for people to build better financial habits and grow their savings with the help of the 50% bonus.
The Help to Save scheme is a fantastic way to grow your money if you’re on a tight budget. Even small amounts add up, and with the 50% bonus from the Government, it becomes even more rewarding. With the scheme extended till April 2027 and eligibility widened, it’s worth checking if you qualify. In just a few minutes, you can open your account and start building a more secure financial future.
Whether you’re saving for a rainy day, emergencies, or just to feel a little more in control of your money, Help to Save is a smart and simple way to begin. Don’t miss out on this opportunity to make your savings grow faster—with help from the Government itself.
FAQ
What is the Help to Save scheme?
Help to Save is a UK Government scheme that gives low-income earners a 50% bonus on money they save, up to £1,200 over four years.
Who is eligible for Help to Save in 2025?
Anyone working and receiving Universal Credit is now eligible, even if they don’t meet the earlier income requirements.
How much can I save each month?
You can save between £1 and £50 every month in your Help to Save account.
When will I get the bonus?
Bonuses are paid at the end of the second and fourth year of saving.
Can I withdraw my money anytime?
Yes, but withdrawing may lower your future bonus.
How do I apply for Help to Save?
You can apply through the GOV.UK website or the HMRC app.
