The Help to Save scheme is intended to help those on low incomes to boost their savings. Eligible users of the scheme can save between £1 and £50 every calendar month and receive a 50% government bonus. The 50% bonus is payable at the end of the second and fourth years and is based on how much account holders have saved. The bonus is paid directly into the account holder’s chosen bank account.
This means that account holders on low incomes can receive a maximum bonus of up to £1,200 on savings of £2,400 for four years from the date the account is opened. The scheme is open to most working people who receive Working Tax Credits or Universal Credit.
Almost 450,000 people have opened Help to Save accounts since the scheme was launched in September 2018 and March 2023, with nearly £372.5 million paid into accounts during that time. This has seen the government award £146 million in bonus payments.
The scheme had been due to end in September 2023 but was extended by 18 months, until April 2025. The extension was announced as part of the Spring Budget measures earlier this year.