Introduction
Millions of people receiving Universal Credit are being urged by HMRC to open a Help to Save account a government-backed savings scheme offering up to £1,200 in free bonus cash.
The tax authority issued a renewed warning as the scheme sees rising demand, with 7.5 million people now eligible across the UK.
The programme has been repeatedly praised by personal finance expert Martin Lewis, who has described it as one of the best money-boosting tools for low-income households.
HMRC is encouraging people to act now and benefit from generous 50% bonuses paid after two and four years.
Who Can Claim the £1,200 Bonus?
The scheme is available to anyone receiving Universal Credit or Working Tax Credit, making it accessible to a significant portion of working-age households.
HMRC says eligibility has expanded as Universal Credit numbers have increased from 6.4 million to 7.5 million in just eighteen months.
Those eligible simply need to open an online account, after which they can begin saving from as little as £1 per month.
The government stresses that all savings are fully backed by the Treasury, guaranteeing complete protection for participants.
How the Help to Save Scheme Works
Help to Save allows users to save between £1 and £50 each month, without any obligation to deposit money regularly. Savers can pay in as many times as they wish, provided they do not exceed the £50 monthly cap.
The bonus structure is designed to reward consistent saving. After two years, the government pays a 50% bonus based on the saver’s highest balance, and a second bonus, also 50%, is paid after four years depending on additional savings made.
How Savers Can Receive Up to £1,200
Savers who put away the maximum of £50 per month can accumulate £2,400 over four years. With the government paying £600 after two years and another potential £600 after four years, a total bonus of £1,200 can be achieved.
Crucially, even if savers withdraw money due to emergencies, the bonus calculation still uses the highest previous balance. This ensures that people do not lose their bonus entitlement simply because they faced unavoidable expenses.
Martin Lewis Calls Scheme “Unbeatable”
Money Saving Expert founder Martin Lewis has strongly endorsed the programme, calling it the best savings product available for people on a tight budget. He highlighted that the scheme offers “serious free cash with zero risk” something extremely rare in personal finance.
Lewis has encouraged people to tell friends and family who claim Universal Credit, warning that many eligible households remain unaware of the opportunity. He emphasised that even modest regular savings can lead to substantial government bonuses.
HMRC Encourages Wider Participation
HMRC says nearly 500,000 people have already taken advantage of the scheme since its launch in 2018, saving a combined £372.5 million. But officials believe millions more could benefit, urging people to check eligibility through GOV.UK or the HMRC app.
Myrtle Lloyd, HMRC’s Director General for Customer Services, said the scheme provides “a simple and effective way to build a financial safety net,” adding that the government will continue promoting it throughout 2025 and beyond.
Final Summary
The Help to Save scheme remains one of the most generous tools available to low-income households, offering up to £1,200 in free cash from the government.
With millions eligible and bonuses guaranteed, HMRC and financial experts are urging people to sign up before missing out on a rare, high-value support opportunity.
