# Help to Save scheme explained

> Savings & ISAs · Last updated 4 July 2026

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## Quick answer

Help to Save is a UK government scheme paying a 50% bonus on savings for eligible working tax credit or Universal Credit claimants — up to £1,200 bonus over four years.

HMRC runs Help to Save for people on low incomes building emergency funds. Bonuses are tax-free and paid after two and four years. This guide explains eligibility and how it compares with other accounts.

## Key facts

- Save between £1 and £50 each month — maximum £2,400 over four years
- Government pays 50% bonus on highest balance — up to £1,200 tax-free bonus overall
- Open if entitled to Working Tax Credit or receiving Universal Credit with minimum earnings
- Closing early loses future bonuses but you keep savings and bonuses already paid

## How bonuses work

First bonus after two years is 50% of the highest balance in years one and two. Second bonus after four years uses highest balance in years three and four.

You can miss months — there is no requirement to save every month up to the £50 cap. The account stays open and you can resume saving whenever you can afford to.

## Eligibility

Check gov.uk when your benefits change — eligibility can start and stop with Universal Credit awards. You can keep the account for four years once opened even if benefits end.

Self-employed people on tax credits may qualify if they meet income tests. Universal Credit recipients can also apply if they meet the eligibility criteria.

## Compared with other savings

Help to Save beats almost any market rate because of the 50% bonus, but caps are low. Use it alongside a small emergency fund in easy access accounts.

Help to Save does not replace pension saving — bonuses are modest and the account closes after four years. Use it alongside workplace or personal pension contributions for retirement.

## Frequently asked questions

### Does saving affect benefits?

Help to Save balances under £6,000 are disregarded for Universal Credit for 12 months — check current disregard rules on gov.uk.

### Can both partners open accounts?

Each eligible person can open their own Help to Save account if individually qualifying.

### Is the bonus taxable?

No. Help to Save bonuses are tax-free and do not count as income for benefits means tests in most cases.

## Primary source

https://www.gov.uk/get-help-savings-low-income

## Related

- [Universal Credit explained](https://moneyguide.org.uk/benefits-tax/universal-credit-explained/)
- [Emergency fund](https://moneyguide.org.uk/budgeting/emergency-fund/)

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Independent UK money guidance from [Money Guide](https://moneyguide.org.uk). Information only — not regulated financial advice.