The Help to Save scheme was designed to encourage saving among individuals on certain benefits, particularly Universal Credit and Working Tax Credit. It allows eligible participants to open an account and save up to £50 per calendar month over four years. For every £1 saved, HMRC contributes a 50 pence bonus, which is paid directly into the saver’s bank account.
Participants may deposit money as frequently as they wish, provided they do not exceed the £50 monthly cap. Over the course of four years, the maximum possible deposit is £2,400, yielding the highest potential government bonus of £1,200.
How the Bonus is Calculated
The bonus structure under Help to Save is split into two distinct payment periods. After two years, account holders receive a bonus equivalent to 50 percent of the highest balance saved during that period.
At the end of the four years, an additional bonus is paid, calculated as 50 percent of the difference between the highest balance saved in the first two years and that in the final two years. According to HMRC, if a participant’s highest balance remains the same between periods, they will not receive a final bonus.
The maximum amount a participant can save £2,400 over four years would qualify them for the full £1,200 bonus if monthly contributions are maximised.
Eligibility Criteria Explained
The scheme is open to people living in the UK who are receiving Universal Credit and whose household income during their latest Universal Credit assessment period was £658.64 or more from paid work.
It is also available to those entitled to Working Tax Credit. Only one Help to Save account is permitted per person. The scheme is tax-free, and receiving a bonus does not affect claimants' benefit payments. Both eligibility and terms can be checked on the official government website.
How to Open and Manage an Account
Opening a Help to Save account can be done online via GOV.UK or through the official HMRC mobile app. HMRC states this process takes less than five minutes. Management of the account, including monitoring balances and bonuses or making deposits, is available through these digital platforms.
Recent government data shows nearly 18,500 people opened accounts using the HMRC app in 2024, reflecting the growing adoption of this technology among benefit recipients. Deposits may be made by debit card, bank transfer, or standing order.
Withdrawal Rules and Impact on Bonus
Money saved in a Help to Save account may be withdrawn at any time; however, withdrawal amounts will affect the bonus calculation. Since the 50 percent bonus is based on the highest saved balance within a specific period, withdrawals could reduce or eliminate the final bonus one receives.
Bonuses themselves are paid directly to users’ bank accounts and not into the Help to Save account. Account holders are therefore advised to consider how withdrawals may impact their entitlement before accessing their savings.
Extension and Uptake of the Scheme
Originally introduced as a time-limited offer, the Help to Save scheme has been extended until April 2027. This extension ensures continued support for those on Universal Credit and Working Tax Credit, enabling more households to establish emergency savings pots.
Government statistics indicate increasing engagement with the scheme, highlighting its importance in supporting the financial wellbeing of low-income earners. Promotion of the initiative through digital services is expected to maintain or accelerate uptake in the coming years.
Final Summary
The Help to Save scheme remains a valuable opportunity for individuals receiving Universal Credit or Working Tax Credit to significantly boost their savings, with government bonuses of up to £1,200 available over four years.
With the scheme now extended until April 2027, eligible participants can take advantage of secure, simple digital account management while building financial resilience. Individuals considering or already using Help to Save can track their bonus accrual and eligibility alongside other personal finance matters through services such as the Pie app.
