Help to Save scheme: Who is eligible for 50% government bonus and how does it work?

1. Money

Three million low earners are eligible for a huge top-up on their savings - here’s what to do

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It can be hard to save if you’re not earning much money.

But if you’re living month-to-month on a low income and benefits, it’s crucial to have a small savings buffer to cope with emergencies.

Thankfully, creating that buffer is a little easier with a scheme you should know about, called Help to Save.

What is Help to Save?

Help to Save is a special savings account for people who have a low income and get state benefits.

It boosts your money by topping up your savings with bonuses from the government.

These bonuses are far more generous than the interest you might earn from a normal savings account.

It is designed to help encourage people start regularly saving when previously they might not have done so, thereby building themselves a gradual financial safety buffer.

Who can open a Help to Save account?

To open a Help to Save account you need to be:

1. Living in the UK

A few people outside the UK can also apply: Crown servants, members of the armed forces, and their husbands, wives, and civil partners.

2. Working (earning at least £1 a month)

From April 2028, you’ll also be able to open an account if you have children in education, or if you spend 35+ hours a week caring for someone with a disability.

3. Getting Universal Credit

This only applies when you first open the account. If you stop getting Universal Credit at any point afterwards, you can still save and get the bonuses.

How does a Help to Save account work?

It’s simple: you can have the account for up to four years, and you can pay in up to £50 a month.

After two years, you’ll get a bonus based on how much you’ve saved so far.

After four years, you’ll get another bonus based on how much you’ve saved since the first one.

How much are the bonuses?

These bonuses are 50 per cent of the biggest balance you’ve hit in each two-year period.

If you pay in the highest amount every month (£50) and don’t withdraw any money, your balance would be £1,200, so your bonus would be £600.

Over four years, you can save up to £2,400 and get two bonuses, totalling up to £1,200.

What if you can’t pay in £50 a month?

Smaller amounts can still add up. For example, if you pay in £10 a month and don’t withdraw anything, you could save £240 in each two-year period and get two bonuses of £120 each.

Your total savings after four years could be £480, and your total bonuses could be £240.

Here are some other examples:

Monthly savings

Year 2 balance

Year 4 balance

Bonuses

£5

£120

£240

£120 (2x £60)

£20

£480

£960

£480 (2x £240)

£30

£720

£1,440

£720 (2x £360)

£40

£960

£1,920

£960 (2x £480)

You can also pay in less some months, skip some months completely, and withdraw money whenever you need to. Just remember this will affect the balance you can hit, so your bonuses could be smaller.

Get a free fractional share worth up to £100.Capital at risk.

Terms and conditions apply.

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Get a free fractional share worth up to £100.Capital at risk.

Terms and conditions apply.

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Let’s say you paid in £20 a month for 18 months, hitting a balance of £360. But then you had to withdraw £100 and couldn’t afford to pay in again. Your biggest balance would still be £360, so your bonus would be £180.

How do you open an account?

You can apply online, using your National Insurance number or postcode, UK bank details, and identity documents. Apply here.

If you can’t apply online or need help, call the Help to Save team on 0300 322 7093 during office hours.

What else do you need to know?

It’s worth knowing a few extra details, for yourself or someone else to use the scheme:

• If you get Universal Credit as a couple, you and your partner can both open a Help to Save account.
• Your bonuses are paid into your regular bank account, not your Help to Save account. You can spend them or set them aside as extra savings.
• You can withdraw from the account at any time, but you might need to wait up to three days for the money to reach you.
• If you close the account, you can’t reopen it, and you won’t get your bonus. So, it’s best to keep it open, even if you can’t pay in right now.
• You can open an account even if you have debts. However, you should only put money in if it doesn’t affect your debt repayments.
• If your total savings (or you and your partner’s) reach £6,000 or more, your Universal Credit payments will reduce. This includes money in your Help to Save account.

Remember, you can pay into your Help to Save account as rarely or often as you like, but you can’t put in more than £50 in any calendar month.

It’s a great scheme to help you get started - make the most of it and save your way towards the start of financial freedom.

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