Help to Save scheme explained

If you’re on a low income, finding spare money to save each month isn’t always easy. The UK government’s Help to Save scheme is designed to support people earning a lower income by offering a tax-free bonus based on the amount saved. On this page, you’ll learn how Help to Save works, if you’re eligible, how it might affect your benefits, and how to apply.

Help to Save is a type of savings account backed by the UK government that’s designed to help low-income earners save. Under the government saving scheme, you can make monthly deposits and receive a tax-free bonus worth 50% of your highest balance. This first bonus is paid into your bank account after two years. A second 50% bonus is paid after four years, but it’s only calculated on the extra savings you’ve added since the first two years. The idea is to make saving for future goals or building an emergency buffer more accessible.

Help to Save is a government scheme. The accounts are run by National Savings and Investments (NS&I), which is backed by the government. That means you get back what you’ve paid in, along with any bonus you’ve earned.

If you’re eligible to open a Help to Save account, you can save between £1 and £50 into your account per month, although you’re not required to save every month. You can make any number of deposits each calendar month, as long as the total doesn’t exceed £50. For example, if you have saved £50 by 8 January, you will not be able to pay in again until 1 February.

Help to Save is a type of easy access account, so you can take money out whenever you need to without paying any penalties. Any withdrawals you make will be deposited in your bank or building society account. However, bear in mind that bonuses are based on the highest amount saved. Taking money out and not replenishing it to the same level can result in a smaller bonus.

The Help to Save scheme is for UK residents. If you live overseas, you can apply for Help to Save if you or your spouse/civil partner is a Crown servant or member of the British Armed Forces.

You must also meet the following two requirements:

• You receive Universal Credit
• Your take-home pay was £1 or more in your last monthly assessment period 

You can continue to use your Help to Save account even if you stop claiming benefits.

Eligibility for the Help to Save scheme used to be based on whether you were earning a specific amount in your last Universal Credit assessment period, or receiving Working Tax Credit or Child Tax Credit. These rules were simplified in 2025 as tax credits were phased out and more households moved onto Universal Credit.

Savers can earn two tax-free bonuses: one at the end of two years and a second after four years. Both bonuses are paid directly into a nominated bank account, not into the Help to Save account itself. After receiving the first bonus, you can choose to either continue saving into the account for another two years or close the account. If you continue, the account will close after four years.

In total, you can receive up to £1,200 in government bonuses. After two years, the government pays you a bonus worth 50% of the highest account balance you reached during that time. 

For example, if the largest balance in your Help to Save account at any point during the first two years was £600, you’d receive a £300 bonus, even if you subsequently withdrew the whole amount.

After four years, the bonus is calculated slightly differently. It’s based on 50% of the difference between:

• The highest balance you reached in the first two years 
• The highest balance achieved during the third and fourth years 

This means that you will not receive a second bonus if the highest balance in years three and four was lower than in the first two years.

For example, your peak account balance in years one and two was £600. You then manage to save more to reach £1,000. At the end of the four-year period, you’re eligible for a £200 bonus. This is calculated as £1,000 - £600 = £400, which is then divided by two.

This depends on your situation. The Help to Save bonus itself doesn’t count as income for means-tested benefits like Universal Credit or Housing Benefit. However, both your savings in the account and any bonus you receive will count as capital when your benefits are assessed.

With Help to Save, the maximum you can save – including the bonus – is £3,600, and this is below the £6,000 threshold where benefits start to be reduced. This means that if the balance in your Help to Save account is your only savings, it should not affect your eligibility for benefits. 

However, if you do have other savings, paying into a Help to Save account could push you over the £6,000 savings threshold. If you’re in a relationship with someone and you live together (whether married or not), keep in mind that your partner’s savings are also included in the £6,000 threshold.

The Department for Work and Pensions will deduct £4.35 a month in Universal Credit for every £250 (or part of £250) of combined savings over £6,000, and up to £16,000. You won’t be entitled to Universal Credit if you have capital worth £16,000 or more. 

Read our guide ‘How much can I have in savings when on benefits?’ or refer to the Government webpage for more information.

Once you’ve checked you’re eligible for the Help to Save scheme, you can apply online.

1. Sign in to start your application. You can do this by going to the Help to Save “How to apply” page on GOV.UK and clicking Apply now. Alternatively, you can use the HMRC mobile app. You’ll need a Government Gateway ID or a GOV.UK One Login to enter the site securely.
2. If you don’t already have a Government Gateway ID or One Login, you can create one during the sign‑in process. You’ll need:
   
   a. Your National Insurance number or postcode

   b. Two pieces of ID, such as a valid UK passport, UK driving licence, details of a previous tax credit claim or Self Assessment, or credit file information.

3. Enter information about your personal circumstances, including your UK address and bank account details.
4. Once everything has been submitted, HMRC will check your eligibility and let you know whether your Help to Save account has been opened.
5. If you’re having problems while applying or you don’t have access to the internet, you can call the HMRC Help to Save helpline on 0300 322 7093 for phone support.

If you’re not eligible for the Help to Save scheme, you still have several other ways to save. Below are some options.

• Cash ISAs. These accounts also offer tax-free interest, and savers have larger maximum deposit amounts than the Help to Save monthly cap.
• Other government-backed products through NS&I. Options like Premium Bonds, which offer tax-free, prize-based winnings, or other NS&I savings accounts provide government backing and different risk/return profiles.
• Regular savings accounts. These are designed for monthly deposits and may suit savers who like a predictable habit (in a similar way to the Help to Save scheme, but without the government bonus).

If you’d prefer to open a savings account rather than a Help to Save account, explore savings accounts with competitive rates on our marketplace. Once you’ve found an account, simply register for a Raisin UK Account and log in to apply online. It’s free to set up an account. What’s more, eligible deposits with our UK-regulated partner banks are protected up to £120,000 per person, per bank, by the Financial Services Compensation Scheme (FSCS).