If you’re on Universal Credit, Working Tax Credit, or Child Tax Credit, you could now earn up to £1,200 in tax-free bonuses over four years, thanks to the DWP’s extended Help to Save scheme. It’s one of the UK’s most rewarding savings initiatives—backed by the government, easy to access, and designed to boost your savings with a guaranteed 50% bonus.
Whether you’re putting away a little or a lot, this guide explains how Help to Save works, how to apply, and how to make the most of every pound you save.
Overview
| Feature | Details |
|---|---|
| Eligibility | Universal Credit, Working Tax Credit, or Child Tax Credit |
| Monthly Savings | £1 – £50 |
| Bonus Rate | 50% tax-free over two periods of two years |
| Total Bonus | Up to £1,200 over four years |
| Flexibility | Withdraw anytime (may affect bonus) |
| Provider | National Savings and Investments (NS&I) |
| Application Link | GOV.UK Help to Save |
| Deadline | Open to new accounts until July 2027 |
What Is the Help to Save Scheme?
Help to Save is a UK government-backed savings account managed by NS&I, offering a 50% bonus on money you save. That means if you put away £2,400 over four years, you’ll receive a £1,200 bonus—paid in cash and entirely tax-free.
The account is open to anyone receiving Universal Credit with at least £1 of earned income in the last assessment period, or people entitled to Working Tax Credit or Child Tax Credit.
Even if you stop receiving benefits later, your account stays open for the full four years.
How Does Help to Save Work?
Here’s a simple step-by-step breakdown:
1. Open an Account
- Visit GOV.UK Help to Save
- Sign in with your Government Gateway ID
- Provide your National Insurance number and bank details
It only takes about 10 minutes.
2. Save Monthly
- Deposit £1 to £50 per month
- Skip a month if needed—there’s no penalty
- Set up a standing order for easy contributions
3. Earn Two Bonuses
- After 2 years: Get 50% of your highest balance
- After 4 years: Get another 50% bonus on the difference between your highest balances in years 2 and 4
4. Get Paid
Bonuses are paid directly into your bank account. Your savings remain untouched—you decide when to withdraw.
Example Breakdown
| Timeframe | Amount Saved | Bonus Earned | Total Value |
|---|---|---|---|
| 2 Years | £1,200 | £600 | £1,800 |
| 4 Years | £2,400 | £600 | £3,000 |
You can withdraw your savings at any time, but the bonus depends on your highest balance, so frequent withdrawals may reduce it.
Why This Scheme Matters
The latest ONS figures show 11 million UK adults have less than £100 in savings. Help to Save offers a risk-free, flexible way to build an emergency fund—with a huge bonus just for sticking with it.
At a time when everyday costs are rising, this scheme gives low-income households a real, practical tool to improve financial stability.
Who Can Apply?
You must:
- Be over 16
- Be living in the UK
- Receive Universal Credit with earned income of at least £1 in your last assessment period
OR - Be entitled to Working Tax Credit or Child Tax Credit
Once opened, your account is valid for 4 years, even if you stop receiving those benefits later.
Tips to Make the Most of Help to Save
- Start Small: Even £10 a month adds up over time.
- Automate It: Set up a standing order so you never miss a contribution.
- Track Your Balance: Use budgeting apps like Emma, Plum, or Snoop.
- Keep Withdrawals Low: Only take money out if absolutely necessary—bonuses depend on your highest saved balance.
- Get Others Involved: If your partner qualifies, they can open their own account too.
Meet Jordan
Jordan, a delivery driver on Universal Credit, opens a Help to Save account. He manages to save just £30 a month.
After 2 years, he’s saved £720 and receives a £360 bonus. By year 4, he’s saved another £720, and earns a second bonus of £360, giving him a total return of £1,440 (savings + bonuses).
It’s a small step with a big impact.
Is It Safe?
Yes. Your money is held by NS&I, which is 100% backed by HM Treasury. This means it’s protected even if the bank or provider fails.
There’s no risk of losing your money—and no fees or hidden charges.
FAQs
Who can open a Help to Save account?
Anyone on Universal Credit, Working Tax Credit, or Child Tax Credit.
What’s the monthly saving limit?
You can save between £1 and £50 each month.
Do I lose my bonus if I withdraw money?
No, but it may reduce your final bonus amount.
How is the bonus calculated?
You earn 50% of your highest balance over each 2-year period.
Is the Help to Save account safe?
Yes, it’s 100% backed by the UK government through NS&I.
