Help to Save is a government savings account for people on Universal Credit who have some earnings. You pay in £1 to £50 a month for four years, and the government pays two tax-free bonuses: 50% of your highest balance after year 2, and 50% of any increase in your highest balance after year 4. The maximum you can receive is £1,200 on £2,400 of savings.
The key detail most people miss is that bonuses are based on your highest balance, not on how much you paid in. That makes the timing of withdrawals important. This guide explains the mechanics with worked examples. For eligibility and how to apply, see our Help to Save scheme guide.
The basics in one table
| Feature | Rule |
|---|---|
| Who can open one | Universal Credit claimants with take-home pay of £1 or more in the last assessment period |
| How much you can pay in | £1 to £50 each calendar month, no minimum monthly payment |
| Bonus | Two bonuses, at the end of year 2 and year 4 |
| Maximum bonus | £1,200 in total |
| Term | Account closes 4 years after opening |
| Withdrawals | Allowed at any time, paid to your own bank account |
On a joint Universal Credit claim, the earnings test applies to you and your partner together, and each partner can open their own account. The scheme is backed by the government, and it was made permanent at the November 2025 Budget, with eligibility set to widen from April 2028 to Universal Credit claimants who get the child or carer element.
How the first bonus is worked out
At the end of year 2, the government looks at the highest balance your account reached at any point during those two years and pays you 50% of it. If you paid in the full £50 every month without withdrawing, your highest balance would be £1,200 and your first bonus £600.
Because it uses the peak balance, a withdrawal after you reach your peak does not reduce the first bonus. A withdrawal before the peak does, because it keeps the balance lower than it would otherwise have been.
How the final bonus is worked out
At the end of year 4, the government compares your highest balance in years 3 and 4 with your highest balance in years 1 and 2. You get 50% of the difference. If your highest balance in the second half is not higher than in the first half, there is no final bonus.
This is where withdrawals hurt most. Money taken out at the start of year 3 has to be paid back in before any new savings start to count towards the final bonus. In practice, the only way to earn the maximum is to keep saving and avoid withdrawals across all four years.
Worked examples
All of these assume £50 a month is paid in for the full four years.
| Scenario | Year 2 bonus | Year 4 bonus | Total |
|---|---|---|---|
| No withdrawals: peaks of £1,200 then £2,400 | £600 | £600 | £1,200 |
| Withdraws £600 at the start of year 3: peaks of £1,200 then £1,800 | £600 | £300 | £900 |
| Withdraws all £1,200 at the start of year 3: peaks of £1,200 then £1,200 | £600 | £0 | £600 |
The government's own example shows a smaller saver: £25 a month for two years gives a highest balance of £600 and a first bonus of £300. Saving an extra £200 over years 3 and 4 lifts the highest balance to £800, so the final bonus is £100.
Practical tips to get the full bonus
Because withdrawals cost you bonus, treat Help to Save as money you leave alone, and keep a small separate easy-access account for emergencies. A few habits help:
- Set up a standing order for a day just after payday, so the £50 (or whatever you can manage) goes in automatically.
- If you miss a month, you cannot catch up later: the limit is £50 per calendar month. Paying in early in the month gives you the most flexibility.
- Pay in windfalls such as a tax refund up to the monthly limit.
- If you must withdraw, it costs least once you have passed the peak balance for the period, and it costs most early in years 3 and 4.
- Bonuses are paid into your bank account, not into the Help to Save account, so decide in advance where that money goes.
What happens to your benefits and at the end
Help to Save bonuses do not affect your Universal Credit. For Universal Credit, personal savings of £6,000 or less do not affect your award either, so most Help to Save users will see no change. If you stop claiming Universal Credit, you can keep paying into your account until it ends.
The account closes four years after it opens and you keep all your savings and bonuses. You cannot open a second account, and if you close early you lose any bonus you have not yet received. Plan where the money goes next: an easy-access account, a Cash ISA or a goal such as a first home deposit. Our guide to saving while on Universal Credit covers how larger balances are treated.
Is Help to Save worth it?
For anyone eligible, the 50% bonus beats any savings account by a wide margin. Even saving £5 a month earns a bonus. The main trade-off is the four-year commitment and the penalty, through lost bonus, for dipping in. Use the savings goal calculator to see how a regular amount builds, and if you need a nudge to keep paying in, SYM can remind you how much to set aside each day. For more on building a buffer on a tight budget, read how to build an emergency fund on a low income.
Frequently asked questions
How is the Help to Save bonus calculated?
Do I lose my bonus if I withdraw from Help to Save?
Can I pay more than £50 a month into Help to Save?
What happens to Help to Save if I come off Universal Credit?
Where is the Help to Save bonus paid?
- Help to Save
- Universal Credit
- government bonus
- low income saving
- savings accounts