If you’re receiving Universal Credit or living on a low income, the UK government has something just for you. It’s called the Help to Save scheme, and it can give you up to £1,200 in tax-free bonuses over four years.
This initiative is backed by National Savings and Investments (NS&I) and is open until April 2027. It’s safe, flexible, and designed to reward consistent saving—even if it’s just a few pounds each month. Here’s everything you need to know.
Overview
The Help to Save scheme rewards you with 50p for every £1 you save. You can save up to £50 each month, and over time, those savings can earn you generous bonuses.
The government pays a 50% bonus based on your highest balance every two years, making this one of the most effective savings tools for low-income earners.
Here’s a quick look at the key details:
| Feature | Details |
|---|---|
| Eligibility | On Universal Credit, with £1+ earned last assessment |
| Monthly Limit | Save between £1 – £50 |
| Bonus Rate | 50% of highest balance over 2 years |
| Maximum Bonus | £1,200 over four years |
| Access to Funds | Withdraw anytime, but may affect bonus |
| Apply at | GOV.UK – Help to Save |
| Provider | National Savings & Investments (NS&I) |
| Available Until | April 2027 |
Eligibility
You can apply for Help to Save if you’re receiving Universal Credit and earned at least £1 in your last monthly assessment period. You’re also eligible if you’re getting Working Tax Credit or Child Tax Credit.
Once your account is opened, you can keep using it for the full four years, even if your benefit status changes later. That means you get long-term access and flexibility, without having to reapply.
Process
Starting with Help to Save is quick and simple. First, go to the GOV.UK Help to Save page and log in with your Government Gateway account. You’ll need to enter some personal details like your National Insurance number and your bank information. It only takes a few minutes.
Once your account is active, you can save anywhere from £1 to £50 per calendar month. You don’t have to save every month, so you control how much and how often you contribute. You can even set up a standing order so it’s automatic and stress-free.
Bonuses are paid twice—after the second year and again after the fourth. The first bonus is worth 50% of your highest balance during the first two years. The second bonus is also 50%—but based on how much more you saved in years three and four compared to the first two years.
When it’s time, the bonus is paid straight into your bank account. Your savings stay in your Help to Save account unless you decide to withdraw them.
Example
Let’s say you save the full £50 every month. After two years, you’ll have saved £1,200 and receive a bonus of £600. If you keep saving the same amount for the next two years, your total savings will be £2,400, and you’ll receive a second £600 bonus. That gives you a grand total of £3,600.
Even if you save just £10 a month, you’ll still come out ahead. You’d save £480 over four years and earn a bonus of £240. That’s money you can use for emergencies, bills, or future plans.
Benefits
This scheme is popular for a reason. There’s no risk involved because it’s fully backed by the UK government through NS&I. You can withdraw your savings whenever you need to without any fees or penalties, although it could reduce your bonus.
You don’t need to save every month to keep the account open, and the bonus is completely tax-free. Plus, you can stay in the program even if your benefits stop after you open your account.
Tips
To make the most of Help to Save, try setting up a standing order so you don’t forget to save each month. You can track your progress using budgeting apps like Snoop, Emma, or Moneyhub to stay motivated.
Avoid taking money out too often because your bonus is based on your highest balance, not your average. You might also find it helpful to set small goals, like saving £300 before Christmas.
If your partner or a family member qualifies too, encourage them to open their own account. Everyone gets their own bonuses.
Flexibility
You’re allowed to withdraw your money at any time. This is especially helpful if you face an emergency. Just remember that taking money out might lower your bonus, since it’s calculated based on the highest balance you’ve reached.
Still, the fact that there are no penalties makes this a great option for those who want both security and access.
Security
Your money is safe. The account is managed by National Savings and Investments (NS&I), which is fully backed by HM Treasury. That means your savings are 100% secure, no matter what happens in the financial world.
The Help to Save scheme is a practical and generous way to build a savings habit, especially during times when every pound counts.
With up to £1,200 in tax-free bonuses and no risk of losing money, it’s a smart choice for anyone on Universal Credit or tax credits. Don’t miss out—open your account now and start saving for a better tomorrow.
FAQs
Who can join Help to Save?
Anyone on Universal Credit or Tax Credits may qualify.
Is there a penalty for skipping months?
No, you can skip months without losing your account.
How do I apply for Help to Save?
Apply online via GOV.UK with your Government Gateway account.
Can I withdraw money early?
Yes, anytime—but it may lower your final bonus.
Is the bonus really tax-free?
Yes, every penny of the bonus is tax-free.
