Labour Extends Help to Save Scheme: Universal Credit Claimants Can Earn Up to £1,200 Bonus

People receiving Universal Credit can now access a government bonus of up to £1,200 under Labour’s Help to Save scheme. The programme has been expanded to include an extra 550,000 workers on Universal Credit, giving more families the chance to build savings.

The scheme, now extended until April 2027, has already provided millions in bonus payments to over half a million savers since it began in 2018. Around 93% of participants save the full £50 each month, meaning anyone depositing the maximum £2,400 over four years could earn an additional £1,200 in bonuses, paid after the second and fourth years.

Emma Reynolds, Labour’s Economic Secretary to the Treasury, said: “Security for working people is at the heart of our Plan for Change. We want more families to have a safety net for tough times, which is why we’re extending support to hundreds of thousands more households.”

Myrtle Lloyd, HMRC’s Director General for Customer Services, added: “Help to Save gives a guaranteed 50% return on savings, however small. Customers can easily apply online or through the HMRC app.”

Savers can put aside between £1 and £50 per month, receiving 50p for every £1 saved. Nearly 18,500 people opened accounts through the HMRC app in 2024, which allows users to check balances, view bonus details, and make deposits by debit card, transfer, or standing order.

Although withdrawals are allowed at any time, doing so may reduce bonus payments.