Help to Save scheme explained
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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.
Last reviewed:
Read the full savings & ISAs guide →Quick answer: What is Help to Save? →Primary source: www.gov.uk/get-help-savings-low-income
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.
Common 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.