The UK government’s Help to Save scheme offers eligible Universal Credit (UC) and Working Tax Credit (WTC) claimants a £1,200 bonus over four years.
Designed to promote financial resilience, this initiative provides a 50% bonus on savings and encourages consistent contributions to build long-term security.
Here’s everything you need to know about the scheme, from eligibility and how it works to tips for maximizing your bonus.
What is the Help to Save Scheme?
The Help to Save scheme, launched by the Department for Work and Pensions (DWP), supports low-income households by incentivizing saving habits.
Eligible claimants can save between £1 and £50 per month, with a 50p bonus for every £1 saved, paid out after two and four years.
| Feature | Details |
|---|---|
| Maximum Monthly Saving | £50 |
| Bonus Rate | 50% of the highest balance |
| Maximum Bonus | £1,200 over four years |
| Flexibility | Save as little or as much as you can |
| Bonus Payments | End of year 2 and year 4 |
Eligibility Criteria
Current Requirements (2024)
The scheme is currently available to:
- Universal Credit claimants with a monthly take-home income of at least £722.45 during the most recent assessment period.
- Working Tax Credit recipients or those entitled to Working Tax Credit combined with Child Tax Credit.
Changes from April 2025
From April 2025, the scheme will expand to include all working Universal Credit claimants, regardless of income level.
How to Apply
Step 1: Confirm Eligibility
Ensure you meet the eligibility criteria for Universal Credit or Working Tax Credit.
Step 2: Open an Account
- Visit the Help to Save website via GOV.UK.
- Log in with your Government Gateway ID and password (create one during the process if needed).
- Provide details of your UK bank account to receive bonus payments.
Step 3: Start Saving
Save between £1 and £50 monthly, depending on your financial situation. You can skip months if necessary without penalties.
How the Bonus is Calculated
Bonuses are based on the highest balance achieved in your Help to Save account during two bonus periods:
- First Bonus: After two years, you’ll receive 50% of your highest balance during this period.
- Final Bonus: At the end of four years, you’ll receive another 50% of any additional savings made since the first bonus.
Example Calculation
If you save £50 monthly for four years:
- Total Savings: £2,400
- First Bonus (Year 2): £600
- Final Bonus (Year 4): £600
- Grand Total (Savings + Bonuses): £3,600
Key Benefits of Help to Save
- Flexibility: No penalties for skipping months or saving less than £50.
- Tax-Free Bonus: The bonuses you earn are not subject to tax.
- Access to Savings: Withdrawals are allowed, though reducing your balance could lower your bonus amount.
- Building Financial Habits: Encourages consistent saving, even for those on tight budgets.
Complementary Support for Universal Credit Claimants
In addition to Help to Save, the UK government offers other programs to support low-income households:
| Program | Details |
|---|---|
| Healthy Start Scheme | Vouchers for families to buy healthy food items. |
| Sure Start Maternity Grant | One-time payment of £500 for new parents. |
| Welfare Assistance Schemes | Local council support for essential expenses. |
| Discretionary Housing Payment | Extra help with housing costs. |
| Energy Grants | Assistance from energy providers for bills. |
Tips to Maximize Your Savings
- Set a Savings Goal: Decide on a monthly amount you can comfortably save.
- Automate Payments: Set up a standing order to ensure consistent contributions.
- Track Progress: Use the online portal to monitor your balance and bonus.
- Avoid Withdrawals: Minimize withdrawals to maintain the highest balance for your bonuses.
Payment Timing
| Action | Timing |
|---|---|
| First Bonus Payment | At the end of Year 2 |
| Final Bonus Payment | At the end of Year 4 |
| Account Closure | After the four-year period, account closes automatically. |
Avoiding Scams
To protect yourself:
- Only communicate through official DWP or GOV.UK channels.
- Do not share personal details via unsolicited calls or emails.
- Verify the legitimacy of communications by contacting Help to Save customer service directly.
The Help to Save scheme is a transformative opportunity for Universal Credit and Working Tax Credit claimants to build financial resilience.
With up to £1,200 in bonuses over four years, this program is a stepping stone toward better savings habits and financial security. Start saving today to take full advantage of this initiative and secure a stronger financial future.
