If you’re claiming Universal Credit or Working Tax Credit in the UK, there’s good news coming your way. The Department for Work and Pensions (DWP) is offering a £1,200 bonus through the Help to Save scheme, specially designed to support low-income workers and boost their savings. Many people don’t even know they’re eligible—so here’s a simple breakdown of what this bonus is, how it works, and how you can claim it.
What is the Help to Save Scheme?
The Help to Save scheme is a government-backed savings plan. It encourages people on benefits to save money by offering a bonus of 50p for every £1 you save, up to a maximum of £1,200 over 4 years.
This means if you save £50 a month (which is the maximum allowed), you’ll earn £25 in bonus money for each month. Over time, it adds up to a solid financial cushion. You can save as little as £1 per month and still get the 50% bonus—so you don’t have to save big to benefit.
| Feature | Details |
|---|---|
| Eligibility | On Universal Credit, with £1+ earned last assessment |
| Monthly Limit | Save between £1 – £50 |
| Bonus Rate | 50% of highest balance over 2 years |
| Maximum Bonus | £1,200 over four years |
| Access to Funds | Withdraw anytime, but may affect bonus |
| Apply at | GOV.UK – Help to Save |
| Provider | National Savings & Investments (NS&I) |
| Available Until | April 2027 |
Who is Eligible?
You can open a Help to Save account if you are:
- Receiving Universal Credit, and your household earned at least £722.45 in your last monthly assessment period.
- Or you’re getting Working Tax Credit or Child Tax Credit (with Working Tax Credit).
The account is completely free, and your eligibility is checked automatically when you apply. You only need to be eligible at the time of opening the account. Even if your benefits stop later, you can continue saving and still receive the bonuses.
How Much Can You Save?
- You can save between £1 and £50 each month.
- You don’t have to save every month.
- The scheme lasts for 4 years, and you can withdraw money whenever you need it.
But here’s the smart part—your bonuses are based on how much you’ve saved and kept in the account, not just what you deposit. So if you save and then withdraw right away, your bonus may be lower.
What Bonuses Do You Get?
There are two bonus payments during the scheme:
- First Bonus: At the end of 2 years, you’ll get 50% of your highest balance saved during that time.
- Final Bonus: At the end of 4 years, you’ll get another 50% of the difference between your highest balance in the last 2 years and your highest balance in the first 2 years.
So, if you saved steadily and didn’t withdraw much, you could earn up to £1,200 in bonuses alone.
How to Apply
Applying is simple and fully online. Here’s how:
- Visit the official GOV.UK Help to Save page.
- Sign in using your Government Gateway ID.
- If you don’t have one, you can create it during the application.
- Provide your bank details where the bonus will be paid.
Once set up, you can manage your savings account online—checking how much you’ve saved and tracking your bonus.
Real-Life Example
Let’s say Priya, a single mother working part-time and on Universal Credit, saves £30 a month into her Help to Save account. That’s £360 a year.
After 2 years, she’s saved £720. She’ll get a 50% bonus—£360. If she continues for another 2 years and increases her balance to £1,200, her final bonus could be another £240, making her total £600 in bonuses over 4 years, just for saving what she can.
Why This Matters Now
With the cost of living going up, it’s getting harder to set money aside. But the Help to Save scheme gives you an extra push to build a savings buffer—without needing to save large amounts.
Even if you can only save £10 a month, that’s still a bonus of £5 per month. Over time, those small savings can make a big difference.
Don’t Miss Out
Thousands of people who qualify for Help to Save haven’t signed up yet—many simply don’t know about it. If you or someone you know receives Universal Credit or Working Tax Credit, it’s worth checking eligibility.