PEOPLE in receipt of Universal Credit and Tax Credits are being alerted to a savings scheme which could see them receive an extra £600 a year.

HMRC's Help to Save scheme can boost the savings of those eligible to apply, helping them keep money aside for a rainy day or unexpected expenses.

This is everything you need to know about Help to Save.

What is HMRC Help to Save?

The scheme, which had originally been due to end in September 2023 before being extended to April 2025, helps millions of people on Universal Credit and other benefits boost their savings.

Under the Help to Save scheme, for every £1 you put in to your Help to Save account, the government will boost it by 50p up to a certain amount.

You can save between £1 and £50 each month into the account.

If you put £50 each month until the scheme ends in April 2025, you would get £600 back in boosted funds from the government.

Who is eligible for Help to Save?

You can apply for a Help to Save account here.

You can open a Help to Save account if you’re receiving:

  • Working Tax Credit
  • Child Tax Credit – and you’re entitled to Working Tax Credit
  • Universal Credit and you (with your partner if it’s a joint claim) had take-home pay of £658.64 or more in your last monthly assessment period

If you get payments as a couple, you and your partner can apply for your own Help to Save accounts. You need to apply separately.

Saving money though a Help to Save account could affect your eligibility for certain benefits and how much you get.

The Department for Work and Pensions guidance explains: “If you or your partner have £6,000 or less in personal savings this will not affect how much Universal Credit you get. This includes any savings in your Help to Save account.

“Your Help to Save bonuses will not affect your Universal Credit payments.

“Any savings or bonuses you earn through Help to Save will not affect how much Working Tax Credit you get.

“If you or your partner have £6,000 or less in personal savings this will not affect how much Housing Benefit you get. This includes any savings in your Help to Save account.”