Money you might be missingSaving & interest
On Universal Credit and working? Help to Save adds 50p for every £1 you save
The government savings account pays bonuses of up to £1,200 over four years. You only need to have earned £1 last month, and the scheme is now permanent.
Published 31 October 2026Last checked 31 October 2026UK-wideFrom HM Revenue and Customs
Illustration generated with AI
What's happening
Help to Save is a government savings account for working people on Universal Credit. For every £1 you save, you get 50p as a bonus, up to £1,200 over four years. Since April 2025 you only need to have earned £1 or more in your last Universal Credit assessment period, and HMRC said in September 2026 that the scheme is now permanent.
The question: Who can open a Help to Save account, how do the bonuses work, and how do you apply?
This applies to you if…
- You get Universal Credit
- You (and your partner, on a joint claim) had take-home pay of £1 or more in your last monthly assessment period
- You live in the UK
- You have not had a Help to Save account before
Not for you if…
- People not getting Universal Credit
- Universal Credit claims with no earnings in the last assessment period (for now)
- Anyone who has already had an account, even if it closed early
What it's worth
50% bonus on your highest balance, paid at the end of year 2 and year 4. The most you can pay in is £50 a month.
Saving the most you can
- Pay in £50 a month for 2 years. Your highest balance is £1,200.
- First bonus: 50% of £1,200 is £600.
- Keep that £1,200 in and pay in £50 a month for 2 more years. Your highest balance rises to £2,400.
- Final bonus: 50% of the £1,200 increase is £600.
£1,200 in bonuses, plus your £2,400 savings
Illustrative calc using the rules on GOV.UK.
How to do it
- 1
You need Universal Credit and at least £1 of take-home pay in your last assessment period. On a joint claim, your combined pay counts.
- 2
Your National Insurance number or postcode, UK bank details, and two forms of ID such as a UK passport, a UK photocard driving licence or Self Assessment details from the last 2 years.
- 3
Apply online or in the HMRC app
HMRC checks your eligibility using information it already holds. HMRC says it takes a few minutes.
- 4
Pay in up to £50 each calendar month
Use a debit card, standing order or bank transfer. You don't have to pay in every month.
- 5
Leave money in to grow your highest balance
Bonuses are based on the highest balance you reach, so withdrawals can lower your final bonus.
Deadline
No closing date
HMRC said on 21 September 2026 that the scheme has been made permanent. It had been due to end in April 2027.
The catches
Only one account, ever
Each account lasts 4 years. Once it closes, at 4 years or early, you can't open another.
Withdrawals cut your final bonus
You keep any bonus already earned. But taking money out makes it harder to raise your highest balance, and you may get no final bonus.
The bonus goes to your bank account
Bonuses are paid into your own bank account, not into the Help to Save account.
Bigger savings can affect Universal Credit
Savings of £6,000 or less, including Help to Save, don't affect Universal Credit. Above £6,000 they can reduce it, and above £16,000 you can't get Universal Credit.
Closing early
You can close the account at any time, but you will miss your next bonus.
Illustrative example
Priya, working part time on Universal Credit
Priya works a few shifts a month and gets Universal Credit. She opens a Help to Save account and pays in £25 a month.
- After 2 years her highest balance is £600, so her first bonus is £300.
- In years 3 and 4 she pays in another £200, so her highest balance reaches £800.
- Her final bonus is 50% of the £200 increase, which is £100.
- She later takes some money out for a new boiler part. The £100 bonus is already earned, so she keeps it.
Priya gets £400 in bonuses on top of the £800 she saved.
Illustrative example based on the GOV.UK worked example.
What this means for…
- Get benefits: Working Universal Credit claimants can get up to £1,200 in bonuses.
- Saver: Savers get a 50% bonus on up to £50 a month.
Common misreadings
You might hear: You need to work 16 hours a week to qualify.
Actually: That rule ended on 6 April 2025. Now £1 or more of take-home pay in your last assessment period is enough.
You might hear: The scheme closes in April 2027.
Actually: HMRC said in September 2026 that Help to Save has been made permanent.
You might hear: You get the 50% bonus every year.
Actually: There are two bonuses, at year 2 and year 4, each worked out from your highest balance.
Where the UK nations differ
- UK-wide
- GOV.UK sets out no differences between England, Scotland, Wales and Northern Ireland. You need to live in the UK.
What you could do
get Universal Credit and had some take-home pay last month
Check your eligibility and open an account online or in the HMRC app
already have an account
Think about leaving money in so your highest balance keeps rising before each bonus date
are worried savings will affect your Universal Credit
Timeline
6 April 2025
Earnings rule cut to £1 of take-home pay
21 September 2026
HMRC says Help to Save is now permanent
The detail
The rules
- Pay in £1 to £50 each calendar month.
- First bonus: 50% of the highest balance in years 1 and 2. Final bonus: 50% of how much your highest balance in years 3 and 4 beats the earlier one.
- Bonuses are tax-free and do not count as income for Universal Credit.
- You can keep using the account if you stop getting Universal Credit.
- Couples each need their own account and must apply separately.
- The government said in Budget 2025 that it is expanding the scheme to Universal Credit claimants who get the caring element or the child element. HMRC said in September 2026 that the earnings rule will be removed for people with caring responsibilities in 2028. No exact start date has been published.
- HMRC figures to the end of April 2026: 656,700 accounts opened since September 2018 and more than £300 million paid in bonuses.
References
- GOV.UK Help to Save guide: Eligibility, bonuses, benefits and applying
- HMRC press release, 21 September 2026: Scheme made permanent; account figures
Words explained
- Help to Save
- A government savings account with a 50% bonus for working people on Universal Credit.
- Assessment period
- The monthly period Universal Credit uses to work out your payment.
- Take-home pay
- Your pay after tax, National Insurance and other deductions.
- Highest balance
- The most money that has been in your account at any point in each 2-year period.
In short
If you get Universal Credit and earned anything last month, you can probably open a Help to Save account. Save up to £50 a month and the government adds 50p for every £1, up to £1,200 over four years. You apply in minutes on GOV.UK or the HMRC app.
Related dates
- 5 Apr Tax year endsDeadline · in 156 days
- 5 Apr Last day to use this year's ISA allowance before savings tax risesDeadline · in 156 days
Sources
- Get help with savings if you're on a low income (Help to Save), GOV.UK
- Help to Save: eligibility, GOV.UK
- Help to Save: what you'll get, GOV.UK
- Help to Save: how it will affect your benefits, GOV.UK
- Help to Save: how to apply, GOV.UK
- More than £300 million paid out through Help to Save, HMRC (2026-09-21)
- More than half a million more people in line for savings boost, HMRC (2025-04-17)
- Help to Save accounts: amendment to the Universal Credit eligibility criteria, HM Treasury and HMRC (2025-03-12)
- Budget 2025, HM Treasury (2025-11-26)
This is guidance, not regulated financial advice. Check figures against the linked official source before you act. Written with AI assistance and checked against primary sources. How Kitty works. For free, impartial help, try MoneyHelper or Citizens Advice.