Who is eligible?
You can open a Help to Save account if you live in the UK and you are either:
- Entitled to Working Tax Credit (with at least £1 a year of WTC payable to you, even if you don't actually receive it because of your income level)
- Claiming Universal Credit AND your household earned at least £793.17 from employment (after tax) in your last monthly UC assessment period
You can have one Help to Save account in your lifetime. If your partner is also eligible, they can open a separate account in their own name. UK Crown servants posted overseas (and their partners) can also apply.
You don't lose the account if you stop being eligible
Once your account is open, it stays open for the full 4 years — even if you come off UC or Working Tax Credit. You keep all rights including the bonus payments. This is one of the most generous parts of the scheme.
How the bonus works
You can save between £1 and £50 a month, in cash deposits, in any combination. Maximum total over 4 years: £2,400. The government adds a 50% bonus — up to £1,200. Paid in two instalments:
Year 2 bonus
At the end of year 2, the government pays a bonus of 50% of the highest balance you ever reached during years 1-2. Maximum: £600 (if you saved the full £50 every month).
Year 4 bonus
At the end of year 4, the government pays a bonus of 50% of (highest year 3-4 balance minus highest year 1-2 balance). Maximum: £600 (if you kept saving without withdrawing).
Both bonuses are paid into your normal bank account, not into the Help to Save account itself. They are completely tax-free.
What this looks like in practice
- £10 a month for 4 years → you save £480, get £240 bonus, end with £720 total
- £25 a month for 4 years → you save £1,200, get £600 bonus, end with £1,800 total
- £50 a month for 4 years → you save £2,400, get £1,200 bonus, end with £3,600 total
Even if you can only afford £10 a month, that's a guaranteed 50% return — better than any UK regulated savings product. It's the highest-return saving option available to anyone in the UK on low income.
How to open an account
- Go to GOV.UK — gov.uk/get-help-savings-low-income.
- Sign in with Government Gateway (the login you use for Universal Credit or HMRC). If you don't have one yet, set one up — takes about 10 minutes.
- Confirm your eligibility — HMRC checks automatically.
- Enter your details:
- Your National Insurance number
- Your UK bank account sort code + account number (for receiving the bonus)
- Confirmation that you're a UK resident
- Account opens immediately. You can start saving the same day.
- Set up a standing order from your bank for the amount you can afford each month. Some people set up £1 a month at first just to keep the account active.
- Check it through the Help to Save app (free on iOS + Android) or via the GOV.UK Help to Save dashboard. You can deposit + withdraw via the app.
How it interacts with your benefits
Help to Save is one of the very few UK savings products that genuinely doesn't affect your benefits. The detail:
Universal Credit + Housing Benefit
- Money in your Help to Save account is ignored for the £6,000 lower savings limit AND the £16,000 upper limit, for as long as it stays in the account.
- If you withdraw, the withdrawn amount is then treated as savings (so above £6,000 starts reducing UC).
- The bonus payment, when it arrives in your bank, also counts as savings from that moment.
Tax Credits
- The bonus is ignored as income for Working Tax Credit and Child Tax Credit.
Council Tax Reduction
- Each local council sets its own rules, but most follow Universal Credit's treatment (ignored while in the account).
One thing to watch — the £6,000 line
If the bonus + your other savings push you above £6,000 total, your UC payment may reduce slightly. If they push you above £16,000, you lose UC entirely. Most low-income savers won't hit either limit, but check before withdrawing if you're close.
What happens after the 4 years?
At the end of year 4:
- You receive your final bonus into your bank account.
- The Help to Save account closes automatically.
- The money you saved is paid to you.
- You cannot reopen another Help to Save account — you only get one in a lifetime.
This is the moment to roll the savings into a different long-term product. Options to consider:
- Cash ISA — up to £20,000/year, tax-free interest, no time limit
- Lifetime ISA (LISA) — another 25% government bonus for buying a first home or for retirement at 60, up to £4,000/year contributions
- Premium Bonds — NS&I-backed, prize draw instead of interest, no risk to capital
- Workplace pension — if you're working, even small contributions get a tax relief boost + (usually) employer matching
If you need support
For free, regulated UK money guidance:
- MoneyHelper — 0800 138 7777, free, Mon-Fri 8am-6pm. UK government-backed money guidance.
- Citizens Advice — 0800 144 8848, free. UC + benefits help.
- StepChange — 0800 138 1111, free, FCA-regulated debt charity. If you're juggling debt, sort that before saving.
- HMRC Help to Save helpline — 0300 322 7093 (Mon-Fri 8am-6pm). For account-specific questions.