Recent data from the Department for Work and Pensions (DWP) reveals that over 8 million people are currently claiming Universal Credit. Yet, many of these claimants may not realize they could qualify for a bonus worth up to £1,200, designed to encourage saving and strengthen financial stability.
Rule Change Expands Eligibility
At the start of the financial year, new rules made around three million Universal Credit recipients eligible for the government’s Help to Save scheme. This initiative has been extended until April 2027, giving low-income households more time to benefit.
Since its launch in 2018, the program has paid out bonuses to over 500,000 participants, amounting to millions of pounds in savings rewards.
Growing Participation Across the UK
Figures show that 93% of users regularly deposit the maximum allowed £50 per month into their Help to Save accounts.
In Scotland alone, more than 36,000 savers have contributed a combined total of £33.5 million since September 2018. Setting up an account is simple, taking only a few minutes on GOV.UK or the HMRC app, with no immediate deposit required.
How the Scheme Works
Contributions
- Save between £1 and £50 each month
- Payments accepted by debit card, bank transfer, or standing order
- Multiple deposits allowed per month (maximum £50 in total)
Bonuses
Participants receive two separate bonuses:
- After two years: 50% of the highest balance saved
- After four years: another 50% bonus
Example
If you save £50 monthly for two years, you’ll deposit £1,200 and earn a £600 bonus. Repeating this for another two years would bring another £600 bonus, meaning you could secure £1,200 in free money. Over the full four years, keeping your deposits untouched could result in a total of £3,600.
| Feature | Details |
|---|---|
| Monthly Deposit | £1–£50 |
| Maximum Over 4 Years | £2,400 |
| Total Bonus Potential | £1,200 |
| Scheme End Date | April 2027 |
| Access Points | GOV.UK, HMRC app |
Account Closure Rules
- Accounts close four years after opening.
- Once closed, you cannot reopen or create another Help to Save account.
- Closing early means missing out on the next scheduled bonus.
Eligibility Criteria
You can apply if you:
- Receive Universal Credit and had a take-home pay of £1 or more in your last monthly assessment period.
- Live in the UK (or are a Crown servant, armed forces member, or their spouse/civil partner abroad).
- Couples on a joint claim can each open their own Help to Save account.
Even if you stop receiving benefits, you can continue using your account without affecting your existing Tax Credits or Universal Credit payments.
The Help to Save scheme is a powerful tool for Universal Credit claimants looking to strengthen their financial security. With the chance to earn up to £1,200 in free bonuses and the flexibility to save as little as £1 per month, it offers a practical way to build long-term savings. Accessible through GOV.UK or the HMRC app, it remains one of the most beneficial savings incentives available for low-income households.
FAQs
How much can I save with Help to Save each month?
You can save anywhere from £1 to £50 per calendar month, depending on your financial situation.
Do I lose benefits if I join Help to Save?
No, saving through this scheme will not affect your Universal Credit or Tax Credits.
What happens if I withdraw money early?
You can withdraw funds anytime, but doing so may reduce your bonus payments, as they are based on your highest balance.