Low-income earners using Help To Save have collectively received £146 million in bonus payments since the savings scheme launched in September 2018, according to HM Revenue and Customs (HMRC).
The revenue body is encouraging those eligible to take advantage of the savings scheme on World Savings Day (October 31).
Help To Save is a Government savings scheme for low-income earners and offers savers a 50% bonus payment worth up to £1,200 over a maximum of four years.
For those who are able to take part, the Help To Save account is a very attractive savings scheme— Victoria Todd, Low Incomes Tax Reform Group
Nearly 450,000 people opened a Help To Save account between September 2018 and March 2023, HMRC said.
People can check their eligibility and open an account on gov.uk or using the HMRC app.
People may be able to open a Help To Save account if they are receiving working tax credit, child tax credit, or universal credit, for example.
Savers can deposit between between £1 and £50 each month. They earn an extra 50p for every £1 saved and bonuses are paid in the second and fourth years of the account being opened. The bonus payment applies to the highest amount saved within the period. Savers who deposit the maximum amount of £2,400 receive a bonus of £1,200.
More than 90% of savers invested the maximum £50 each month, HMRC said. They could make as many deposits they wanted to each month. Money could be withdrawn at any time but this could affect the bonus payments.
Separate figures from the Insolvency Service on Tuesday showed that the number of people across England and Wales seeking “breathing space” from their debts had increased. There were 23,089 breathing-space registrations in the third quarter of 2023 – a 26% increase compared with the third quarter of 2022.
Victoria Todd, head of the Low Incomes Tax Reform Group, said: “For those who are able to take part, the Help To Save account is a very attractive savings scheme, especially when the saver is able to maximise their bonuses.”
