The Department for Work and Pensions (DWP) reports that 8.3 million people now claim Universal Credit, but many working claimants may not know they could be eligible for a government-backed savings bonus of up to £1,200 through the Help to Save scheme.
An eligibility rule change last year means more Universal Credit claimants can join the scheme before it closes to new users in April 2027. To open an account, you must be receiving Universal Credit and have take-home pay of £1 or more in your last monthly assessment period (with your partner if it is a joint claim).
How Help to Save works
Help to Save is a savings account that gives a bonus of 50p for every £1 saved over a maximum of four years. All savings are protected by the UK Government. Since the scheme launched in 2018, it has paid out millions of pounds in bonuses to more than 500,000 people. According to DWP data, 93% of users have paid in the maximum £50 every month.
In Scotland alone, 36,050 people have deposited a total of £33,584,000 into their Help to Save accounts since September 2018. Setting up an account takes just a few minutes, and no initial deposit is required. Accounts can be managed through GOV.UK or the HMRC app.
Bonus payments and savings potential
Savers who deposit the maximum £50 per month (£2,400 over four years) will receive a total bonus of £1,200, paid in two £600 instalments at the end of the second and fourth years. For example, if you save £50 each month for the first two years (totalling £1,200), your first bonus is £600, even if you withdraw the money after the 24th month. If you continue saving for the next two years, you get another £600, potentially building a total of £3,600 when the account closes.
You can deposit between £1 and £50 each calendar month, and you do not have to pay in every month. Payments can be made by debit card, standing order, or bank transfer. Money can be withdrawn at any time, but this may affect the bonus, which is based on the highest amount held in the account.
Eligibility and impact on benefits
To open a Help to Save account, you must be receiving Universal Credit and have take-home pay of £1 or more in your last monthly assessment period. Couples can each apply for their own account. You must live in the UK, or be a Crown servant or member of the British armed forces (or their spouse/civil partner) living overseas.
If you stop claiming benefits, you can keep using your account. Savings in a Help to Save account do not affect Universal Credit or Housing Benefit if you have £6,000 or less in total personal savings. Help to Save bonuses do not affect these benefits.
The account closes four years after opening and cannot be reopened. For more information, visit GOV.UK.
