The Help to Save scheme, offered by the Department for Work and Pensions (DWP), allows eligible Universal Credit and Working Tax Credit claimants to earn up to £1,200 in bonuses over four years.
This program is designed to encourage low-income households to build financial security by rewarding consistent savings with a 50% bonus on the amount saved.
Here’s a detailed guide on eligibility, how the scheme works, and tips for maximizing your savings.
What Is the Help to Save Scheme?
The Help to Save scheme provides a savings account with attractive bonuses to help low-income individuals save regularly. Participants can save up to £50 per month, earning a 50% bonus on their highest savings balance at the end of years two and four.
Key Features:
- Savings Limit: £1–£50 per month.
- Bonus Structure: A 50p bonus for every £1 saved, up to a total of £1,200 over four years.
- Flexible Contributions: No penalties for saving less in certain months.
- Two Bonus Payments: Bonuses paid after the second and fourth years.
Example:
If you save £50 monthly, you’ll accumulate £2,400 over four years. With bonuses of £600 each after two and four years, your total will reach £3,600.
Eligibility Criteria
Current Eligibility (2024):
- Universal Credit Claimants: Must have monthly take-home income of £722.45 or more during the last assessment period.
- Working Tax Credit Claimants: Must be receiving or entitled to Working Tax Credit (or both Child Tax Credit and Working Tax Credit).
Expanded Eligibility (April 2025):
From April 2025, all working Universal Credit claimants will qualify for the scheme, regardless of income level.
How to Apply
Step 1: Create a Government Gateway Account
Visit the Help to Save website and log in using your Government Gateway user ID and password. If you don’t have an account, you can create one during the application process.
Step 2: Provide Banking Details
You’ll need your UK bank account information for bonus payments.
Step 3: Start Saving
Once your account is active, you can save up to £50 each month.
How the Bonus Is Paid
Bonuses are calculated on the highest balance saved during the two-year periods:
- First Bonus (After 2 Years): 50% of the highest balance saved in the first two years.
- Second Bonus (After 4 Years): 50% of any additional savings made in years three and four.
Why Participate?
Financial Security
The scheme helps low-income individuals build savings, offering a strong incentive to develop disciplined saving habits.
Flexibility
There’s no obligation to save the maximum every month, and participants can withdraw funds if necessary (though it may impact bonuses).
Access to Funds
Participants can monitor their progress and savings balance via the Help to Save portal.
Additional Support for Universal Credit Claimants
To further support low-income households, other financial assistance programs are available:
| Scheme | Details |
|---|---|
| Healthy Start Scheme | Vouchers for pregnant women and families with young children to buy essential foods. |
| Sure Start Maternity Grant | A one-off payment of £500 to help with the costs of a new baby for eligible families. |
| Discretionary Housing Payment | Assists with housing costs not fully covered by Universal Credit or Housing Benefit. |
| Welfare Assistance Schemes | Local council programs offering help with essentials like food and utility bills. |
| Energy Grants | Grants from energy providers to manage high energy bills. Check with your provider or Ofgem. |
Tips to Maximize Your Savings
- Set a Savings Goal: Aim to save a consistent amount each month, even if it’s less than £50.
- Automate Your Savings: Set up a standing order to transfer funds directly into your Help to Save account.
- Track Progress: Use the Help to Save portal to monitor your balance and bonuses.
- Prioritize Consistency: While flexible, regular contributions help maximize bonuses.
The Help to Save scheme is an excellent opportunity for Universal Credit claimants to enhance financial stability. With potential bonuses of up to £1,200, participants can turn small monthly savings into a significant financial boost. As eligibility expands in 2025, even more individuals can benefit from this initiative.
