Chancellor to supercharge savings for low-income earners

Parents and carers will be among the 4.5 million low earners who will see their savings supercharged at the Budget, as the Chancellor doubles down on creating an economy that works for and rewards working people. 

Rachel Reeves is expected to announce that the Help to Save scheme, which was set to end in 2027, will be made permanent and opened up to parents and carers on Universal Credit from 2028 – delivering a game-changing savings boost for an extra 1.5millon low earners.  

The scheme, described as ‘unbeatable’ by Martin Lewis, allows eligible savers to put away up to £2,400 over four years which is then bolstered by a £1,200 government bonus helping families build up savings and a buffer for emergencies like a boiler replacement.

A Treasury source said: 

“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."

Help to Save allows savers to put up to £50 a month into a Help to Save account, for four years, and receive a 50% government bonus on the savings they put in. 

Bonuses are paid on the highest amount deposited by the end of the second and fourth years, with savers able to deposit a maximum of £2,400 and receive £1,200 in bonuses. 

The scheme will be expanded to an extra 1.5 million savers to include Universal Credit claimants that have children in education or carers that provide of 35 hours of care to a disability person to help them with the cost of living. 

Making the scheme permanent will give low-income savers the boost and certainty they need knowing that the government will continue to support them to build up savings and put more money in their pockets. 

The scheme has already benefited over 500,000 savers with millions paid out in bonuses, making this permanent and expanding access will mean even more people can benefit for longer.