HM Treasury has published a response and delivery report following its 2023 consultation 'Help to Save Reform'. Several changes have been announced, including widening the scheme's eligibility criteria, paying bonuses more frequently and changing the bonus calculation method.
The original consultation examined the design of the Help to Save scheme, how it serves its purpose and how it could be simplified.
Consultation questions were in five broad areas:
- Eligibility for the Help to Save savings account.
- Process for paying into the account.
- Length of time for which an account can be open.
- Structure of the bonus payments.
- Options for encouraging a continued savings habit when the account closes.
Consultation reponses
The consultation received 18 written responses, with an additional 900 responses received by HMRC via a consumer survey conducted through the Help to Save app.
Respondents felt that:
- Existing eligibility criteria were broadly well-targeted for the scheme’s intent. Many suggested extending the eligibility criteria to include other benefit recipients and lowering or removing the income thresholds.
- Allowing people to replace withdrawals would be a helpful change. 87% of respondents to HMRC's customer survey did not consider the £50 per month savings limit to be a problem.
- The current four-year scheme length was sufficient to develop a savings habit, but concerns were raised that the length of time for which people must wait for their bonuses to be paid could act as a disincentive for them to keep saving.
- The bonus structure and calculation method were complex and not easily understood.
Reforms proposed
At the 2024 Autumn Budget, a series of changes to the Help to Save scheme were announced.
The scheme will be extended to 5 April 2027 and from April 2025 expanded to all working Universal Credit (UC) claimants earning £1 or more.
In addition, from April 2027 under an enhanced scheme, bonuses will be:
- Paid every six months, to reward savings behaviour earlier.
- Calculated based on net contributions (or total new savings) in each six-month period.
- This is designed to be easier to understand and will give savers more flexibility to withdraw their savings when needed, whilst minimising the impact on future bonus opportunities.
- Paid directly into the Help to Save account.
- This should make bonuses more visible to encourage savers to keep them rather than spend them.
Comparison of original and new scheme design
| Bonus frequency | Bonus calculation method | Eligibility | Bonuses paid | |
| New scheme design | Every six months | Bonus on net contribution | All UC claimants who work | To the Help to Save account |
| Original scheme | Every two years | Bonus on highest balance | All UC claimants who work at least 16 hours at the National Living Wage | To another account |
Future delivery consultation
HM Treasury's publication contains a consultation that will inform the final approach to delivering the reformed scheme.
The current scheme is provided exclusively through National Savings and Investments (NS&I) and the government is keen to deliver the enhanced scheme via third-party providers.
Views are sought from financial institutions such as banks, building societies and credit unions to understand their interest in delivering the reformed scheme.
The consultation closes on 22 January 2025. Responses should be sent by email.
Useful guides on this topic
Help to Save scheme
What is the Help to Save scheme? How does it work?
Help to Save Reform consultation
HM Treasury has launched a new consultation ‘Help to Save Reform’ which explores how the Help to Save scheme can be simplified and reformed to make it an effective savings product.
External link
HM Treasury consultation outcome: Help to Save Reform
