If you’re on Universal Credit and working, you could be missing out on a government savings scheme that gives you a 50% bonus on the money you save. Help to Save lets you put away up to £50 a month and earn as much as £1,200 in tax-free bonuses over four years. Despite that incentive, there are concerns that many people who could benefit still haven’t opened an account.
What is Help to Save?
Help to Save is a government backed savings account designed to help you build up some emergency savings if you’re on a lower income. You can save between £1 and £50 each calendar month, although you don’t have to pay money in every month. For every £1 you save, you could ultimately receive an extra 50p from the government.
That means if you managed to save the maximum £50 every month for four years, you would put away £2,400 and could receive up to £1,200 in bonuses on top. You don’t have to commit to £50 a month to benefit. If your budget only allows you to save a smaller amount, you can still earn a bonus based on your savings.
Who can open a Help to Save account?
At the moment, you can open an account if you receive Universal Credit and you, or you and your partner if you have a joint claim and had take-home pay of at least £1 in your last monthly assessment period. You must also normally live in the UK, although there are exceptions for members of the armed forces, Crown servants and their spouses or civil partners who live overseas.
If you claim Universal Credit as a couple and you’re both eligible, you can each apply for your own Help to Save account and once you’ve opened your account, you can continue using it even if you later stop claiming benefits.
How do the bonuses work?
Under the current scheme, you receive up to two tax-free bonuses: one after two years and another after four years. Your first bonus is worth 50% of the highest balance you’ve reached during your first two years.
So, for example, if your highest balance is £600, your first bonus would be £300. Your second bonus works slightly differently. It is worth 50% of the difference between your highest balance during your first two years and your highest balance during years three and four. That makes steadily increasing your highest balance important if you want to maximise what you receive.
Can you take your money out?
Yes. This isn’t an account where your savings are locked away for four years. You can withdraw money into your bank account when you need it. However, taking money out can make it harder to increase your highest balance and could reduce the bonus you eventually receive. That flexibility could make Help to Save useful if you’re trying to build an emergency fund but don’t want your money completely out of reach.
But, be careful about closing the account altogether,if you close it early, you’ll miss your next bonus and won’t be able to open another Help to Save account.
Why are people being encouraged to sign up now?
Help to Save is expanding
Help to Save is being made permanent, and from April 2028 eligibility is due to expand to Universal Credit claimants who receive the child element, the caring element or both. This means you could become eligible even if you aren’t working.
The way you access Help to Save is also set to change. The government plans to move towards a multi-provider model, which could allow banks, building societies and credit unions to offer the accounts directly.
For now, however, the existing eligibility rules still apply.
Will Help to Save affect your Universal Credit?
Your savings can affect means-tested benefits, so it’s worth keeping an eye on your total savings rather than looking at your Help to Save account in isolation. For Universal Credit, savings of £6,000 or less won’t affect the amount you receive. This includes money held in your Help to Save account. Your Help to Save bonuses themselves don’t affect your Universal Credit payments. If your overall savings rise above the relevant limits, however, your entitlement can be affected, so check the rules for any benefits you receive.
Is Help to Save worth considering?
If you’re eligible and already trying to put some money aside, the 50% government bonus makes Help to Save worth considering. You don’t have to have £50 every month to take part, even putting away a few pounds when you can could help you build a financial cushion over time and earn a bonus on top.
You can check whether you’re eligible and apply through the Help to Save service on GOV.UK.
And if you’re struggling with a company over a financial product or service, you can use Resolver to raise and manage your complaint for free, keeping your correspondence and evidence together in one place.
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