What is the Help to Save scheme?

The Help to Save scheme is a government-backed savings account. It’s designed to help people on low incomes build up their savings with a free cash bonus. For every £1 you save, the government adds 50p, making it one of the most rewarding savings schemes out there.

It’s flexible, so you don’t have to commit to saving every month, and you can withdraw your money if needed. But if you stick with it, you could get up to £1,200 in bonus payments over four years!

Let’s break down how it all works, who can apply, and how much you could earn.

Who can get a Help to Save account?

Not everyone is eligible for Help to Save—it’s specifically for people on certain benefits.

You can open an account if you’re:

• Receiving Universal Credit and earned at least £793.17 in your last monthly assessment period
• Getting Working Tax Credit, either on its own or alongside Child Tax Credit

The good news? Even if your circumstances change—for example, if you stop receiving benefits—you can keep your account open and continue saving. Just be sure to apply before the scheme closes to new applicants in April 2027.

When is the Help to Save bonus paid?

The Help to Save bonus isn’t paid monthly or yearly like interest – instead, it comes in two lump sums over the four-year scheme. Here’s how it works:

• After two years – You’ll receive a bonus worth 50% of your highest balance during this time.
• After four years – You’ll get another 50% bonus, this time based on any extra savings you’ve added in years three and four.

This means the more you save – and the less you withdraw – the bigger your bonus will be. Since you can save up to £50 a month, the maximum bonus you could earn over four years is £1,200.

How much could you get?

The amount you’ll receive depends on how much you save. Here’s a breakdown of potential savings over the full four years:

Monthly savings	Total saved in four years	Total bonus earned	Final balance
£50	£2,400	£1,200	£3,600
£25	£1,200	£600	£1,800
£10	£480	£240	£720

These figures assume you save the maximum every month and don’t withdraw any money. If you take money out, your final bonus will be lower.

When does the Help to Save scheme end?

The Help to Save scheme has been extended and is now open to new applicants until April 2027. Once you open an account, it remains active for four years, after which it will automatically close.

How do you apply for Help to Save?

Opening a Help to Save account is quick and easy—you just need to apply online through GOV.UK. You’ll need a Government Gateway ID, which you can create during the application if you don’t already have one.

Once your account is set up, you can manage it online and pay in money by debit card, standing order, or bank transfer—there’s no Direct Debit option.

Can you withdraw money if you need to?

Yes! You’re free to take money out whenever you like. However, since your bonus is based on your highest balance, withdrawing money could mean you miss out on some of your bonus.

So, if you’re saving for something important, it’s best to leave your money untouched until you get your bonus payout.

Does Help to Save affect Universal Credit payments?

No, the Help to Save bonus does not affect your Universal Credit payments. Even if your savings in the Help to Save account push you above the £16,000 savings threshold, the bonus itself is not counted as part of your total savings when assessing your eligibility for Universal Credit.

This means you can save with Help to Save without worrying that the bonus will impact your benefits. However, any savings you have in the account (excluding the bonus) could still be considered when your Universal Credit entitlement is calculated.

What are the pros and cons of the Help to Save account?

Help to Save has a lot of benefits, but it won’t be right for everyone.

Benefits of the Help to Save scheme

✅ A 50% bonus from the government – a unique savings boost you won’t get elsewhere!
✅ No commitment – You can save as much or as little as you want each month.
✅ Won’t affect your benefits – Money in your Help to Save account doesn’t reduce Universal Credit or Tax Credit payments.
✅ Encourages regular saving – Even small amounts add up, and having a financial cushion can make a huge difference.

Cons of the Help to Save scheme

❌ No interest – Unlike other savings accounts, you won’t earn any extra on top of the bonus.
❌ Bonus is only paid twice – Unlike most savings accounts which reward you monthly, this would do so after two years.
❌ Account lasts for four years max – After that, you’ll need to find another place to keep saving.

Alternative savings options for low-income earners

If you’re not eligible for Help to Save, or you’re looking for other ways to save, here are some alternatives:

• Lifetime ISA (LISA) – Perfect if you’re saving for your first home or retirement, as you’ll get a 25% government bonus (up to £1,000 per year).
• Regular savings accounts – Many banks offer high-interest savings accounts, which might be a better fit if you want ongoing rewards for saving.
• Credit unions – Some offer better savings options for lower incomes, often with more flexibility than big banks.

 Is the Help to Save scheme worth it?

If you’re eligible, the Help to Save could be a great way to build up your savings. And the 50% bonus is a generous incentive, especially if you’re on a low income. Even if you can only put aside a small amount each month, it can still add up over time and give you a financial cushion.

That said, if you think you’ll need to dip into your savings regularly, a more flexible savings account might be a better fit.

At the end of the day, the best savings account is the one that works for you and your financial situation. But if you qualify for Help to Save and can afford to put a little aside, it’s a great opportunity to build up a financial cushion with a big financial boost from the government.