HMRC urges Brits to check if they qualify for savings account offering £1,200 boost | Personal Finance | Finance
Brits have been urged to see if they qualify for a £1,200 cash boost from HM Revenue and Customs (HMRC). The Help to Save scheme is a type of savings account that allows people on Universal Credit to get 50p every time they save £1 over four years.
Savers can pay into their account as many times as they like, but the most they can pay in each month is £50, earning them a £25 bonus. A maximum deposit of £2,400 over four years can bag a payment of £1,200. Two tax-free bonuses are paid over the four years, paid at the end of the second and fourth years based on how much money you’ve put away. In a recent post on X (formerly Twitter), HMRC urged those claiming Universal Credit to check their eligibility for the savings scheme to earn a £1,200 bonus. HMRC said: “Do you claim Universal Credit? If so, you may be eligible for a savings boost. With Help to Save, for every £1 you save, the Government adds 50p. That’s up to £1,200 in bonus payments over four years. Check eligibility and apply today via the HMRC app.”
HMRC says it takes less than five minutes to set up an account and this can be easily managed via GOV.UK or the HMRC app, where people can view their account, check their balance and bonus details, and make a deposit via debit card, bank transfer or standing order.
Money can be withdrawn at any time, although this may affect the 50% bonus payment. HMRC explains: “After your first two years, you’ll get a first bonus if you’ve been using your account to save. This bonus will be 50% of the highest balance you’ve saved.
“After four years, you’ll get a final bonus if you continue to save. This bonus will be 50% of the difference between two amounts:
the highest balance saved in the last two years (years 3 and 4)
“If your highest balance does not increase, you will not earn a final bonus. The most you can pay into your account each calendar month is £50, which is £2,400 over four years.
“The most you can earn from your savings in four years is £1,200 in bonus money. Your bonus is paid into your bank account, not your Help to Save account.”
HMRC said last year that more than half a million people are in line to benefit from the scheme, which has been extended to allow anyone working and receiving Universal Credit to open an account.
The extension of the scheme to April 2027 means that more people can make the most of the government top-up, with those who pay in £50 per month getting a £25 bonus.
