- More people will now also be eligible for Help to Save scheme
Millions of low-income savers are in line to get a boost to their savings pot from the Government in the Budget today.
The ‘Help to Save’ scheme, which was set to end in 2027, will be made permanent from 2028 by the Chancellor in the Budget.
It allows eligible savers to put in up to £50 per month for four years, and get a 50 per cent bonus paid by the Government.
It means those who save the maximum amount could get £1,200 of free money.
The scheme will also now be open to more people, including 1.5million parents and carers on Universal Credit from 2028, a Treasury source has said.
Universal Credit claimants that have children in education or carers that provide of 35 hours of care to a disability person to help them with the cost of living will be eligible for the savings scheme.
It means the scheme will be open to a total of 4.5million low-income savers. Around 500,000 low income savers currently use the scheme to save.
Help to save: 1.5million more low income savers will be eligible for Help to Save scheme
How does Help to Save work?
Help to Save is a type of savings account which was launched by the Government in 2018.
It helps low-income people who receive certain benefits to build a savings pot by paying a bonus of 50p for every £1 they save over four years.
Savers can put away between £1 and £50 each month. They don’t have to pay money into the account every month.
It means those tucking away the maximum £50 a month can get a £25 Government top-up, with bonuses paid in the second and fourth years of the account being opened.
Savers who deposit the maximum amount of £2,400 over four years will receive a bonus totalling £1,200 into their bank accounts, with payments coming at the end of the second and final year.
The scheme was due to end in September 2023 but was extended to April 2025 and has now been extended until April 2027.
The scheme is one way those with very little income can begin to build up a savings pot and financial resilience.
A Treasury spokesman said: ‘For too long Governments have ignored the role of carers and parents in keeping the economy ticking.
‘The Chancellor wants to change that and help millions more working people build a savings habit.’
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