Help to Save account: Universal Credit HMRC scheme change opens UK government cash eligibility to millions

• The Help to Save scheme now allows all Universal Credit claimants to apply, with a minimum earning of just £1
• The scheme offers a 50% government bonus on savings, up to £1,200, to help build financial resilience
• Eligibility was previously limited to those earning £846.56 or more, but the criteria have been loosened
• The scheme has been extended to 2027, with over 3 million people now eligible
• Application is straightforward and can be done online through the Government Gateway

A significant change to the Government’s Help to Save scheme, which aims to help people on low incomes build up savings, came into effect over the weekend (April 6).

The eligibility criteria has been loosened, meaning hundreds of thousands more Universal Credit claimants are able to apply.

Until now, the Help to Save scheme was only available to people on Universal Credit who earned £846.56 or more in their last assessment period.

But as of now, claimants only need to have earned a minimum of £1 during their previous assessment period to qualify for the scheme.

The change means that more people - especially those with fluctuating incomes or on lower earnings - can now benefit from the scheme’s advantages. Here is everything you need to know about it.

(Photo: SUSANNAH IRELAND/AFP via Getty Images) | AFP via Getty Images

What is the Help to Save scheme?

The Help to Save scheme is a Government-backed savings account designed to support those on low incomes in building financial resilience.

Launched in 2018, the scheme offers a government bonus of 50p for every £1 saved, up to a maximum of £1,200.

Participants can save up to £50 each month, and the scheme is designed to help people gradually build their savings over a period of four years.

Over the first two years of the scheme, individuals can receive a 50% bonus on the total amount they have saved, which is then paid after two years

The bonus is then matched again for another two years, offering a further opportunity to build savings and receive a government bonus.

This gives savers a chance to build a financial cushion, something that can be incredibly helpful for those on tight budgets or in periods of financial uncertainty.

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What’s changed?

The change to the eligibility criteria was confirmed as part of the Government’s Autumn Budget last October. The Help to Save scheme itself has also been extended until 2027.

Previously, the scheme had an income threshold of £846.56 during the last assessment period, which limited eligibility to those with relatively higher earnings within the Universal Credit system.

Now, claimants only need to have earned a minimum of £1 during their previous assessment period to qualify for the scheme.

The Government hopes that by opening the scheme to more people, it can provide a boost to those who may find it challenging to build up savings.

How do I apply for Help to Save?

According to recent Government data, just 517,000 Help to Save accounts had been opened since its launch in 2018.

Given that the scheme has the potential to benefit as many as three million people, the low uptake indicates that many eligible people may not be aware of it, or face barriers in applying.

Applying is straightforward. Here’s a step-by-step guide:

• Check your eligibility: If you’re on Universal Credit, all you need to do is have earned at least £1 in your most recent assessment period.
• Apply online: The application process is entirely digital. You can apply for the Help to Save scheme through the Government’s official website. You’ll need to log in using your Government Gateway account, which you can set up if you don’t already have one.
• Start saving: Once your application is approved, you can start saving up to £50 each month. You can make contributions by direct debit or manually transferring funds to your Help to Save account.

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