A financial opportunity worth up to £1,200 is now available to millions of low-income individuals across the UK thanks to the expansion of the government’s Help to Save scheme.
If you’re working and on Universal Credit, this is your chance to boost your savings with a generous 50% bonus, even if you can only save a small amount each month.
What Is the Help to Save Scheme?
The Help to Save scheme was created to support working individuals on low incomes in building up a financial safety net.
It allows eligible users to save between £1 and £50 each month for up to four years, earning an impressive 50p for every £1 saved—effectively a 50% bonus on savings.
This bonus is paid in two parts:
- At the end of year 2
- At the end of year 4
If someone saves the maximum £50 each month, they can accumulate £2,400 over four years. The government adds another £1,200, giving a total return of £3,600.
Who Is Now Eligible?
As of the latest update, over 3 million people in the UK are eligible for this scheme due to expanded criteria. Now, all Universal Credit claimants who are in work qualify—regardless of their earnings. Previously, only those earning above a certain amount were included.
Eligibility includes
- Individuals receiving Universal Credit with earned income of at least £1 in their last monthly assessment period
- Those on Working Tax Credit
- UK residents (or members of the armed forces or Crown servants living overseas)
Each partner in a couple can open their own Help to Save account, provided both meet the criteria.
How Bonuses Are Calculated
Bonuses are awarded based on the highest balance in the account during each 2-year period. You do not need to pay in every month, and you can deposit multiple times—just not more than £50 in a calendar month.
Example:
| Period | Total Saved | Bonus | Total With Bonus |
|---|---|---|---|
| Year 1–2 | £1,200 | £600 | £1,800 |
| Year 3–4 | £1,200 | £600 | £1,800 |
| Total | £2,400 | £1,200 | £3,600 |
Even if you withdraw money during the term, you’re still eligible for bonuses, though the amount might be affected.
How to Open an Account
Setting up a Help to Save account takes just a few minutes. You do not need to deposit any money immediately, and there’s no penalty if you can’t save every month.
Key features:
- Open online through GOV.UK or the HMRC app
- Make deposits via debit card, bank transfer, or standing order
- Track savings and bonuses easily through your account
- Withdraw money anytime (though frequent withdrawals can lower your bonus)
This flexibility makes it an ideal solution for people with fluctuating incomes or irregular financial obligations.
How Long Does the Scheme Last?
Your account stays active for four years from the day you open it. After that, it automatically closes, and you can’t open a second one.
Important reminders:
- Withdrawals before bonus periods reduce your potential return
- After four years, the account closes permanently
- You can’t open a new Help to Save account once yours ends
That said, even if your financial circumstances change and you no longer receive benefits, you can continue using your existing Help to Save account until the four-year period ends.
Why This Scheme Matters Now
With the cost of living rising across the UK, building a cushion of emergency savings is more important than ever. The Help to Save scheme not only encourages saving but also rewards you generously for doing so.
For many households, this can be the difference between making ends meet and struggling during an emergency.
More than 500,000 people have already received bonuses, with most participants saving the full £50 every month. The impact is real, and now 550,000 more people can benefit thanks to the expanded eligibility.
The Help to Save scheme is a powerful tool for anyone working and receiving Universal Credit or Tax Credits. With the chance to earn a £1,200 bonus over four years, now is the time to act.
you can save a little or a lot, the government is encouraging you to build better financial habits—with a generous reward at the end. Open your account, make regular deposits, and start growing your savings today.
FAQs
Do I need to save every month to get the bonus?
No. You can choose to save any amount between £1 and £50 per month, and you don’t have to save every month. The bonus is based on your highest balance during the qualifying period.
What happens if I withdraw money from my account?
You can withdraw funds at any time. However, doing so may reduce the maximum bonus you can receive, as bonuses are calculated based on your highest balance.
Can I open an account if I’m not currently working?
You need to have earned at least £1 in your last Universal Credit assessment period to be eligible. If you’re not currently in work but meet other criteria, you may still qualify.