People claiming Universal Credit could be missing out on one of the most generous Government-backed savings schemes available.
Money saving expert Martin Lewis has previously described HMRC's Help to Save account as "unbeatable" because it pays eligible savers a 50% Government bonus on the money they put away.
The scheme is open to eligible people receiving Universal Credit who are working, allowing them to save between £1 and £50 each month while earning a Government bonus worth up to £1,200 over four years.
How the Help to Save scheme works
Help to Save is designed to encourage people on lower incomes to build an emergency savings pot.
You can save anything from £1 to £50 a month, and unlike many savings accounts, the Government adds 50p for every £1 you've saved.
Bonuses are paid after the second year and again after the fourth year, based on the highest balance you've built up during each period.
Someone who saves the maximum £50 every month for four years will pay in £2,400 and receive a total Government bonus of £1,200.
Importantly, your savings remain yours and can be withdrawn whenever you need them, although taking money out could reduce the size of your future bonus.
Who can apply?
HMRC says the scheme is available to people who:
- Receive Universal Credit
- Are working and meet the eligibility rules
The Government has extended Help to Save until April 2027, meaning hundreds of thousands more people can still open an account.
Martin Lewis calls it 'unbeatable'
Martin Lewis has repeatedly highlighted Help to Save as one of the best savings products available because of the guaranteed Government top-up.
Unlike normal savings accounts, where returns depend on interest rates, Help to Save offers a guaranteed 50% bonus, making it difficult to beat for anyone who qualifies.
How to open an account
Eligible savers can open a Help to Save account in just a few minutes through GOV.UK or the HMRC app.
The app also lets users:
- Check their balance
- View bonus payments
- Make deposits by debit card
- Set up bank transfers or standing orders
- Withdraw money if needed
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What HMRC says
Myrtle Lloyd, HMRC's Director General for Customer Services, said: "Thousands of customers have already benefitted from Help to Save and many more are now eligible to get a great return of 50% on top of their savings, no matter how little you can save each month.
"Go online or via the HMRC app to find out more and apply today."
Michelle Highman, Chief Executive of The Money Charity, said: "It's a brilliant way for people to start to save and build their financial resilience. Saving even a little each month can make a difference, and the 50% Government bonus makes it one of the best places eligible people can put their money."
