Working individuals in receipt of Universal Credit will be eligible to open a Help to Save account from 6 April 2025, under an announcement made at Autumn Budget 2024 and brought into effect by the Help-to-Save Accounts Regulations 20251. The scheme pays a 50% bonus on up to £50 of monthly savings1.
The change amends the Help-to-Save Accounts Regulations 2018. Under the previous rules, individuals receiving Universal Credit could not open an account if their weekly household or individual earnings were less than the equivalent of 16 hours a week at the national living wage rate1. The new instrument amends paragraphs (3)(b) and (6)(d) of regulation 3 so that Universal Credit claimants must have earned income of at least £1 in the assessment period immediately before the date on which their eligibility is first determined, and removes the reference to the national living wage rate1.
The explanatory memorandum states the purpose of the change:
"Expanding the scheme's eligibility to all working individuals in receipt of Universal Credit will ensure that Help-to-Save is accessible to many more households that require financial support."
The memorandum says a consultation on the future of the Help to Save scheme was published in April 2023, and that comments received on eligibility criteria were supportive of lowering or removing the earnings thresholds1. It states the territorial application of the instrument is the United Kingdom1. National Savings and Investments administers Help to Save accounts for the government, and the memorandum describes the impact on it as negligible1. The instrument does not include a statutory review clause, and HMRC will monitor the impact using information provided by National Savings & Investments1. The Exchequer impacts of the eligibility change were published at Autumn Budget 20241.
| Position | Universal Credit earnings condition for opening a Help to Save account |
|---|---|
| Before the change | Weekly household or individual earnings of at least the equivalent of 16 hours a week at the national living wage rate1 |
| From 6 April 2025 | Earned income of at least £1 in the assessment period immediately before eligibility is first determined1 |
Why it matters for households
The change widens who can open an account among people claiming Universal Credit. From 6 April 2025, a claimant with earned income of at least £1 in the relevant assessment period meets the earnings part of the eligibility test, where previously a higher threshold based on 16 hours a week at the national living wage applied1. The scheme's bonus remains 50% on up to £50 of monthly savings1. Because Help to Save accounts are a form of savings, they can interact with means-tested benefits; the site's guide to how savings affect Universal Credit and other benefits and the page on whether Help to Save affects benefits cover that ground. The memorandum does not set out the number of households expected to become eligible, and no such figure appears in it1.
What happens next
The regulations take effect so that the expanded eligibility applies from 6 April 20251. HMRC's technical manual and guidance for Help to Save will be amended to reflect the changes to the account rules1. A Tax Information and Impact Note covering the instrument will be published on GOV.UK1. HMRC will monitor the impact of the change on an ongoing basis using information from National Savings & Investments1.
Sources1 cited
- The Help-to-Save Accounts Regulations 2025 legislation.gov.uk
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