UK Help to Save Bonus Payments Pass £300 Million as Government Plans Wider Eligibility

The UK government’s Help to Save scheme has paid more than £300 million in bonuses to lower-income savers since its launch, according to HM Revenue & Customs, as ministers prepare a broader version of the scheme for 2028.

HMRC said on September 21 that 656,700 Help to Save accounts had been opened since September 2018 and that savers had deposited £676.7 million in total by the end of April 2026. The latest official statistics show 293,600 accounts were still open at that point.

The milestone comes after eligibility was widened in April 2025 to working Universal Credit claimants with earnings of at least £1 in the previous monthly assessment period. The government now plans another expansion from April 2028, alongside a shift from the current single-provider model to one in which banks, building societies and credit unions can offer Help to Save accounts directly to eligible customers.

How Help to Save works today

Help to Save is a government-backed savings account designed for people on lower incomes. Under the current rules, eligible customers can save between £1 and £50 in each calendar month for up to four years. Deposits can be made by debit card, standing order or bank transfer, and customers do not have to contribute every month.

The main incentive is a government bonus worth 50 pence for every £1 saved, subject to the scheme’s bonus calculation. A saver who consistently reaches the £50 monthly limit can deposit up to £2,400 over four years and receive bonuses of up to £1,200. Current accounts pay bonuses at the end of the second and fourth years, with the amount linked to the highest balances achieved during the relevant periods.

Withdrawals are allowed, but they can reduce the bonus because the calculation depends on the saver’s highest balance. The account closes after four years, and under the current rules a customer cannot open another Help to Save account after that account has matured or been closed early.

HMRC’s September savings statistics show that about 566,650 people have made at least one deposit since the scheme began. Among people making deposits, the average monthly amount was £48, close to the £50 maximum, and 94% of monthly deposits were for the full £50. The same data also show 38,600 open accounts had received no deposit as of April 2026.

Account openings accelerated after the April 2025 eligibility change. Around 85,100 accounts were opened between April 2025 and March 2026, compared with 55,750 in the previous 12-month period. HMRC said the increase might reflect the removal of the earlier earnings threshold for Universal Credit claimants.

Eligibility is set to widen again from April 2028

The next expansion is aimed at Universal Credit households that may not qualify under the current work-based rule. Budget 2025 states that from April 2028 Help to Save eligibility will extend to Universal Credit claimants who receive the child element, the caring element or both.

That wording is more specific than saying the scheme will open to every Universal Credit claimant. HMRC’s September 21 announcement estimates that the 2028 changes will make an additional 1.5 million households eligible, but the formal Budget measure identifies the new group by receipt of the child or caring element.

The change builds on the April 2025 reform, which removed the previous minimum earnings threshold and made the scheme available to working Universal Credit claimants earning at least £1 in the preceding assessment period. Before that reform, claimants generally had to meet an earnings test linked to 16 hours a week at the National Living Wage.

The government has also made Help to Save permanent. The scheme had originally been due to close to new accounts in September 2023, was extended first to April 2025 and then to April 2027, before ministers committed to keeping it as a continuing part of the savings system.

A multi-provider model is intended to improve access

The 2028 expansion is only one part of a broader redesign. In its June 2026 response to a Help to Save delivery consultation, HM Treasury said the scheme would move away from a single-provider model and allow approved banks, building societies and credit unions to offer the accounts directly.

Treasury said take-up remained relatively low despite the benefit to people who use the scheme. Its consultation work pointed to limited awareness and practical barriers as reasons participation had not reached more eligible households. Moving Help to Save into mainstream financial institutions is intended to make the account more visible and easier to access through providers that customers may already use.

The planned redesign retains the four-year term and the 50% government bonus but is also intended to simplify how bonuses are calculated. Treasury’s June response says the reformed structure is expected to use more frequent six-monthly bonus payments, rather than the current two-year and four-year payment points, with bonuses paid directly into the Help to Save account.

Providers would handle the customer-facing account and day-to-day servicing, while HMRC would continue to determine eligibility using government-held data and administer the government bonus. Treasury said interest in participating was strongest among credit unions, with banks and building societies also expressing interest, although providers raised questions about development costs, technical requirements and implementation timelines.

The government is working toward opening registration for the reformed scheme in 2028, subject to final design and implementation planning. Until those changes take effect, the current Help to Save rules continue to apply, including the £50 monthly saving cap and the existing bonus schedule.