Chancellor Rachel Reeves has revealed plans to make the government's Help to Save scheme permanent and significantly expand its eligibility to include parents and carers receiving Universal Credit.
The Treasury confirmed ahead of the Autumn Budget that an additional 1.5 million people will gain access to the savings initiative as part of Labour's strategy to address the ongoing cost of living pressures affecting lower-income households.
How the Help to Save Scheme Operates
Help to Save is specifically designed to encourage saving among people with lower incomes by offering substantial financial incentives. Participants can deposit up to £50 per month over a four-year period, accumulating to £2,400 in total savings.
The scheme provides a generous 50% bonus on the amount saved, with a maximum bonus of £1,200 paid directly into the saver's bank account. The bonus payments are distributed in two instalments after two and four years of regular saving.
To qualify for the scheme, individuals must currently be receiving Universal Credit and have employment that provides at least £1 per month in take-home pay.
Major Expansion and Permanent Status
In a significant policy shift, the scheme previously scheduled to conclude in 2027 will now continue indefinitely. From 2028 onwards, eligibility will extend to benefit claimants with children in education and carers providing at least 35 hours of care weekly to disabled individuals.
A Treasury spokesperson emphasised the government's recognition of carers' and parents' crucial economic contributions, stating: 'For too long governments have ignored the role of carers and parents in keeping the economy ticking. The Chancellor wants to change that and help millions more working people build a savings habit.'
Context Within Broader Budget Measures
The Help to Save expansion forms part of Labour's Budget framework aimed at supporting working people and those on lower incomes during the ongoing cost of living challenges.
However, the Budget includes other measures that have attracted criticism, including reducing the annual Cash ISA allowance from £20,000 to £12,000 and extending the freeze on income tax thresholds beyond the current 2028-29 deadline, which may increase tax burdens over time.
The Treasury highlighted that Help to Save has already supported over 500,000 savers with millions paid in bonuses, making the permanent status and expanded access a logical progression to benefit more people for longer periods.
