Help to save scheme ‘will build financial resilience’

The extended help to save scheme will help more people “build their financial resilience”, a minister has said.

Help to save accounts allow certain people entitled to working tax credit or receiving universal credit to get a bonus of 50p for every pound they save over four years.

And from April, eligibility for the scheme will be extended to all universal credit claimants who are in work.

Emma Reynolds, economic secretary to the Treasury, said this will ensure that help to save “reaches many more households who need it”, not just “those earning over a certain amount”.

“The government is committed to helping people build their financial resilience,” she said.

What else is the government doing?

Ms Reynolds also highlighted other steps ministers are taking to improve people’s financial circumstances.

For instance, she said the government has introduced a new fair repayment rate to cap deductions on universal credit to 15% of the standard allowance.

That’s down from 25% previously.

Ms Reynolds said this means that people will “keep more of their universal credit payment each month”.

“This will provide a direct cash boost to 1.2m households on universal credit by £420 a year on average,” she commented.

A financial inclusion strategy is also being developed, so more people can have “access to the affordable and appropriate products they need to support their financial resilience”.

Improving access to debt advice

Ms Reynolds added that the government offers a variety of debt advice services to support those in problem debt, and is continuing to support the breathing space scheme.

“The aim is to encourage earlier access to debt advice and enable people in problem debt to get their finances back on track,” she said.

“As of December 2024, over 280,000 people in problem debt have benefited from breathing space protections.”

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