The UK government has confirmed that Universal Credit claimants can receive up to £1,200 in bonuses through the Help to Save scheme.
This initiative is designed to encourage low-income workers to build financial security by offering a 50% bonus on their savings over four years.
With the cost of living rising, this scheme provides an excellent opportunity to grow your savings with government support. If you’re on Universal Credit or Working Tax Credit, this guide will help you understand the scheme, check your eligibility, and learn how to apply before the April 2025 deadline.
How the Help to Save Scheme Works
The Help to Save scheme offers a 50% government bonus on the amount you save. Here’s how it works:
- Deposit Money Monthly
- You can save between £1 and £50 per month.
- You don’t have to save every month.
- Earn a 50% Bonus
- After 2 years, you get 50% of your highest savings balance as a bonus.
- After 4 years, you get another 50% bonus on additional savings made in the last two years.
- Receive a Maximum Bonus of £1,200
- If you save the maximum £50 per month for four years (£2,400 total), you will receive the full £1,200 government bonus.
Eligibility Criteria
To qualify for the Help to Save scheme, you must:
- Be receiving Universal Credit with a monthly income of at least £722.45 in your last assessment period.
- OR be receiving Working Tax Credit (or entitled to Working Tax Credit with Child Tax Credit).
- Be a UK resident.
Upcoming Change in April 2025
From April 2025, the scheme will be expanded to include all working Universal Credit claimants, regardless of income level.
Payment Schedule
The Help to Save bonuses are paid in two stages:
| Payment Stage | Bonus Amount | Payment Timing |
|---|---|---|
| After 2 Years | 50% of your highest savings balance | End of Year 2 |
| After 4 Years | 50% of extra savings made in Years 3 & 4 | End of Year 4 |
How to Apply
Applying for the Help to Save scheme is free and simple.
- Visit GOV.UK
- Sign in with Your Government Gateway Account
- If you don’t have one, you’ll need to create a Government Gateway ID.
- Enter Your Personal Information
- Provide your National Insurance number, bank details, and benefit information.
- Start Saving
- Once your account is open, you can start making deposits immediately.
Application Deadline
The scheme is open until at least April 2025, but applying early allows you to maximize your savings and receive the full £1,200 bonus.
Financial Planning Tips to Maximize Your Bonus
To make the most of your Help to Save account, follow these expert strategies:
- Set Up a Standing Order – Automate monthly deposits to ensure consistent savings.
- Save What You Can Afford – Even small amounts qualify for the 50% bonus.
- Avoid Unnecessary Withdrawals – Since bonuses are based on your highest balance, try to keep your savings untouched.
- Combine with Other Savings Schemes – Consider using a Lifetime ISA or credit union savings plan for extra financial benefits.
Success Stories
Anna, 45 – Universal Credit Claimant
Anna, a single mother, started using Help to Save in 2021. She saved £30 per month and earned a £720 bonus after four years. This helped her cover emergency expenses and plan for her children’s future.
Mark, 52 – Part-Time Worker on Universal Credit
Mark struggled to save until he joined the Help to Save scheme. By depositing small amounts regularly, he received £500 in government bonuses, which helped him pay off a credit card bill.
The Help to Save scheme is a valuable financial tool for Universal Credit claimants. If you’re eligible, apply today to take advantage of the 50% government bonus before the April 2025 deadline.
