Not everyone has heard of Help to Save, but this initiative from the DWP is quietly drawing attention again. Following a recent update reported by Western Telegraph, the scheme could offer meaningful support to households looking for new ways to manage their money. Details are still surfacing, but for those navigating benefits like Universal Credit, it may be worth a closer look.
Expanded Access Through Universal Credit Migration
Following the transition of claimants from legacy benefits such as Working Tax Credit and certain disability-related benefits to Universal Credit, a significantly larger number of people have become eligible for Help to Save. The scheme has been extended, and eligible individuals will now be able to open a Help to Save account until April 2027.
Help to Save is a government-backed savings account that allows qualifying individuals to save up to £50 per calendar month over four years. For every £1 saved, the government pays a 50p bonus, resulting in a maximum possible bonus of £1,200.
Participants can deposit any amount between £1 and £50 per month, and there is no obligation to save every month. According to official guidance:
You can pay in as many times as you like, but the most you can pay in each calendar month is £50. For example, if you have saved £50 by 8 January you will not be able to pay in again until 1 February.
Deposits can be made by debit card, standing order, or bank transfer, and funds can only be withdrawn to a verified UK bank account. The scheme is backed by the government, so “all savings in the scheme are secure.”
Government Bonuses at Year Two and Year Four
Participants receive two government bonuses, one at the end of year two and another at the end of year four. The bonuses are calculated as follows :
- After two years : “You’ll get a first bonus if you’ve been using your account to save. This bonus will be 50% of the highest balance you’ve saved.”
- After four years : “You’ll get a final bonus if you continue to save. This bonus will be 50% of the difference between the highest balance saved in the first 2 years (years 1 and 2) and the highest balance saved in the last 2 years (years 3 and 4).”
If the balance does not increase during the final two years, no second bonus is paid. The maximum savings permitted over four years is £2,400, yielding up to £1,200 in total bonus payments.
Account Duration and Closure
The Help to Save account automatically closes after four years. It cannot be reopened, and no new account can be opened thereafter :
You will not be able to reopen it or open another Help to Save account.
Participants may close their account early, but doing so carries a significant tradeoff :
If you close your account early you’ll miss your next bonus and you will not be able to open another one.
No Adverse Effect on Benefit Payments
Savings made through Help to Save will not impact Universal Credit or Housing Benefit payments, provided total personal savings remain below the £6,000 threshold.
If you or your partner have £6,000 or less in personal savings this will not affect how much Universal Credit you get. This includes any savings in your Help to Save account. Your Help to Save bonuses will not affect your Universal Credit payments.
The same rules apply to Housing Benefit.
Who Is Eligible and How to Apply
To open a Help to Save account, applicants must either be receiving Working Tax Credit, or receiving Universal Credit and have earned at least £722.45 in their last monthly assessment period.
The application process requires users to sign in via the official government portal at www.gov.uk/get-help-savings-low-income. To register, individuals need a National Insurance number or postcode, along with two forms of identification.
Accepted forms of ID include a valid UK passport, a UK photocard driving licence issued by the DVLA or DVA, details from a tax credit claim, a Self Assessment tax return submitted within the past two years, or credit record information such as data linked to loans, credit cards, or mortgages.
Once verified, applicants are required to provide a UK bank account to manage their deposits and withdrawals.
