Help to Save account holders get £220 million boost to savings – are you eligible?

If you’re working and on Universal Credit, you could be missing out on a savings boost worth hundreds of pounds.

The Help to Save scheme is designed to support people on low incomes by giving them extra money for saving; and it’s already helped over half a million people across the UK.

Help to Save account holders have now received £220 million in bonus payments from the government. The scheme has been recently extended. You now have until April 2027 to open an account so you can benefit too.

What is Help to Save?

Help to Save is a government-backed savings account. For every £1 you save, the government adds 50p. If you make the maximum deposits and don’t withdraw any cash, you can get up to £1,200 in bonuses over four years.

You can save between £1 and £50 a month, and you don’t have to save every month. You can also take money out if you need to, though this might affect your bonus.

Bonuses are paid:

• after 2 years (based on your highest balance)
• and again after 4 years (based on how much more you saved)

After 4 years, your Help to Save account will close and you won’t be able to open another one, so you only get one go at earning the bonuses.

You can close your account early if you choose, but again, you won’t be able to open another one and you’ll miss out on the next bonus too.

Am I eligible for Help to Save?

You can usually apply for a Help to Save account if you:

• are working with a take-home pay of £1 or more in the last month
• receive Universal Credit (UC)
• live in the UK

You only need to be eligible on the day you apply. Even if your situation changes later, you can keep saving and still get the bonus.

Also, if you claim UC as a couple, your partner will usually be eligible for their own Help to Save account but will need to apply separately.

How do I apply for Help to Save?

To apply, you’ll need to set up a Help to Save account and provide certain information which can include:

• your National Insurance number
• some form of ID (i.e. passport or driving licence)
• information about loans, credit cards, or mortgages as well as tax returns if you’ve made one in the last two years

You’ll also need to provide your UK bank account details.

Will Help to Save affect my other benefits?

The bonus you get from your Help to Save account won’t affect your Universal Credit or Housing Benefit payments. If you have less than £6,000 in personal savings, this account also won’t affect your benefits.

However, in some circumstances, this account can affect your eligibility and how much you get, so it’s worth double checking if you’re unsure.

Should I open a Help to Save account?

Opening a Help to Save account can help you build a regular savings habit and earn £1,200 in tax free bonuses over four years. If you’re eligible, in most cases, it’s worth opening an account.

If you think this will push you over the £6,000 savings limit, you may want to take a look at how your benefits will be affected before you do so. But otherwise, it’s worth looking into opening one before April 2027.