The government's Help to Save scheme is one of the best savings deals available, and many people who qualify do not know it exists. It pays a 50% bonus on what you save over four years, up to £1,200. It is open to working people on Universal Credit. (Working Tax Credit used to count too, but tax credits ended on 5 April 2025 and claimants moved to Universal Credit.) Here is how it works.
How Help to Save Works
Help to Save is a government-backed savings account that pays bonuses based on how much you save. You can save between £1 and £50 per month. After two years, the government pays a 50% bonus on the highest balance you've achieved. You can then continue saving for another two years and earn a second bonus.
- Save £1-£50 per month (you choose the amount each month)
- First bonus paid after 2 years: 50% of highest balance
- Second bonus paid after 4 years: 50% of the difference between your highest balance in years 1–2 and your highest balance in years 3–4
- Maximum total bonus: £1,200 (if you save £50 every month for 4 years)
Who's Eligible?
You can open a Help to Save account if you live in the UK and are getting Universal Credit, and you (with your partner, if it is a joint claim) had take-home pay of £1 or more in your last monthly assessment period. Help to Save was made permanent at Budget 2025, and from 6 April 2028 it is due to extend to Universal Credit claimants with a child or caring element.
- Universal Credit with take-home pay of at least £1 in your last assessment period
- You must live in the UK (Crown servants and armed forces members abroad, and their partners, can also apply)
- One account per person: partners apply separately
- If you stop getting Universal Credit later, you can keep using your account
How to Sign Up
Signing up takes a few minutes online through GOV.UK. You will need a Government Gateway user ID (or you can create one). Once your account is open, you can pay in by debit card, standing order or bank transfer. There is no penalty for missing months: save what you can, when you can.
- Search for Help to Save on gov.uk
- Sign in with your Government Gateway user ID
- Set up a standing order from your bank for consistency
- You can withdraw money at any time, but it may reduce your bonus
Understanding the Bonus Calculation
The bonus is based on your highest balance, not your current balance. If you save £600 over the first two years but withdraw £200 before the end of year 2, your first bonus is still worked out on the £600 peak. But your second bonus only counts growth above that £600, so withdrawals make it harder to earn. The best approach is to save steadily and avoid withdrawals if you can.
- Year 1-2 bonus: 50% of highest balance achieved
- Year 3-4 bonus: 50% of any increase above the Year 2 highest balance
- Example: save £50/month for 4 years = £600 bonus at Year 2 + £600 at Year 4
Tips to Maximise Your Bonus
To get the full £1,200 bonus, you need to save £50 every month for four years: £2,400 in, £3,600 back. That is a guaranteed 50% return, far more than any savings account. If £50 a month is a stretch, start smaller: £20 a month for four years gives a £480 bonus on £960 saved.
- Set up a standing order on payday, automate it
- Even £10/month is worth it, the bonus is proportional
- Don't withdraw unless you absolutely have to
- Combine with budget planning to free up the £50
Pair Help to Save with a daily habit
Help to Save only takes up to £50 a month. To find that £50, or to save more alongside it, a small daily habit helps. SYM tells you how much to put aside today, one tap logs it, and streaks keep you going. Use Help to Save for the guaranteed bonus and build your emergency fund alongside it.
- Help to Save
- government scheme
- savings bonus
- Universal Credit
- UK finance