Help to Save scheme pays £220m in bonuses as extension extends to 2027

Hundreds of thousands of savers who opened a government Help to Save account have received more than £220 million in bonuses since the scheme began in September 2018, according to This Is Money. The program is designed to help people on low incomes build a financial cushion by matching their savings with a government top-up. To date, about 575,200 customers have opened Help to Save accounts, with total deposits into their pots reaching £588.2 million. Savers can accumulate a bonus of 50 pence for every £1 saved over four years, with monthly contributions ranging from £1 to £50. The arrangement allows savers to skip months without losing eligibility, and a maximum contribution of £2,400 over the four-year term yields up to £1,200 in bonuses, paid at the end of the second and fourth years. The scheme was originally slated to end in September 2023 but has since been extended to April 2025 and is now extended through April 2027. Of those who opened a Help to Save account, 94 per cent deposited the maximum amount into their nest egg each month.

The Help to Save scheme targets people on lower incomes as a way to build financial resilience. Eligibility includes receiving Universal Credit and having a take-home pay of at least £1 in the last monthly assessment period, along with being under the state-pension age and having £16,000 or less in money, savings and investments. If you receive payments as a couple, you and your partner each can have your own separate Help to Save account, and accounts must be opened while living in the United Kingdom. Money can be paid into the account via debit card, standing order or bank transfer, and savers may contribute between £1 and £50 per month; there is no requirement to deposit every month. The account closes four years after opening, and once closed you cannot reopen it or open another Help to Save account, though savers can keep the funds they have accumulated. Withdrawals are allowed at any time, but earlier withdrawals may affect the timing or size of the bonus payments.

The extension to 2027 preserves access to the government top-up for households that rely on benefits or irregular income and provides continued incentives to save. Government officials have stressed that while Help to Save is a niche program, it is intended to supplement broader welfare and retirement planning measures by giving low-income savers a structured, predictable way to build a savings buffer over time. The latest figures underscore a steady uptake among eligible savers and a high proportion of participants who aim for the maximum monthly contribution, a pattern that helps guarantee the largest possible bonuses for those who stay on track throughout the four-year period.