Could You Benefit From Help to Save?
Today I’m spotlighting a lesser-known government scheme which, if you’re eligible, can give your finances a valuable boost.
Help to Save is an initiative aimed at helping people on low incomes build up their savings. Offering generous tax-free bonuses, this scheme can provide significant benefits for qualifying individuals.
Here’s everything you need to know.
What is Help to Save?
Help to Save is a government savings scheme designed for people on Universal Credit.
For every £1 you save into your account, the government adds a 50p bonus, effectively giving you a 50% return. You can save up to £50 a month, with bonuses paid out at two key points over the four-year scheme.
How do the Bonuses Work?
Year 2 Bonus: After the first two years, you’ll receive a bonus worth 50% of your highest balance during that period.
Year 4 Bonus: At the end of the four years, you’ll receive a second 50% bonus based on the difference between your highest balance in years 3-4 and years 1-2.
So if, for example, you save the maximum £50 a month for two years, you’ll have £1,200 in your account. The government will then pay you a 50% bonus of £600.
If you continue saving £50 a month for the next two years, your balance excluding bonuses will be £2,400. You will then receive another £600, bringing your total bonuses to £1,200.
Putting it another way, in four years your investment of £2,400 will have accrued £1,200 in tax-free bonuses, giving you a total savings pot of £3,600. No bank savings account will offer you a guaranteed return anywhere near that!
Key Benefits of Help to Save
High returns: As mentioned above, a 50% bonus is significantly higher than any bank savings account interest rate
Flexibility: You can save as little or as much (up to £50 a month) as you like.
No risk: The scheme is government-backed, so there’s no chance of it going bust.
Tax-free: The bonuses are tax-free, and they aren’t treated as income for benefits purposes.
Easy withdrawals: You can withdraw savings any time if you need them (though frequent withdrawals may reduce your future bonuses).
No strings: The scheme is completely free and won’t affect your credit score. In addition, once you have been accepted on Help to Save, it doesn’t matter if your circumstances change.
Who is Eligible?
Recent changes have expanded eligibility for Help to Save to include all working Universal Credit claimants who earned £1 or more in their previous assessment period. The former minimum earnings threshold of £793 per month has been removed.
You must also live in the UK (or meet specific conditions if you live abroad as a Crown servant or member of the armed forces). You must also have a UK bank account.
- The Help to Save scheme deadline has also been extended. You can now open an account until April 2027.
Are There Any Age Limits?
There are no specific age restrictions for opening a Help to Save account provided you meet the criteria above. Once you have qualified for the state pension, however, you will not be eligible to receive Universal Credit. That means if you’re coming up to retirement age (currently 66, gradually rising to 67 from 6 May 2026), it’s important to apply for the scheme before you reach that age.
How to Apply
Opening a Help to Save account is straightforward. You can apply online via the official government website or using the HMRC app.
Note that you will need a Government Gateway User ID and password. If you don’t have one of these already, you can create one during the application process.
Closing Thoughts
For those eligible Help to Save offers a valuable opportunity to build a savings pot, with the added advantage of tax-free government bonuses.
The scheme is designed to be simple and flexible, making it easy for individuals to develop a habit of saving and improve their financial security. If you qualify, it’s well worth considering as a step towards achieving a more stable financial future.
For more information and to apply, visit the government website. Don’t miss this chance to turn small, regular savings into a significant financial boost, before the scheme closes to new applicants in April 2027.
As always, if you have any comments or questions about this article, please do leave them below.