Universal Credit claimants could receive up to £1,200 in free cash.
The savings initiative is available to Universal Credit claimants who earn at least £1 in their monthly assessment period.
The Government-backed scheme offers savers a generous 50p bonus for every £1 saved over a four-year period, with the potential to earn a maximum bonus of £1,200.
Previously limited to those earning £793.17 or more per month, the scheme’s broadened eligibility criteria will make this savings opportunity available to millions more Britons.
The programme has also been extended until April 2027, providing additional time for eligible savers to benefit from the unbeatable returns.
The Help to Save scheme allows participants to save between £1 and £50 each calendar month, with no obligation to make monthly deposits.
Savers receive their bonuses at two key points – at the end of the second year and again after four years.
Martin Lewis previously said: “Imagine you put in £50 a month for a year, you’ve now got £600 in, unfortunately you’ve had an emergency and you have to take it out. You can’t put any more in for the rest of the two years… you still get £300 bonus even though you’ve got nothing in the account.”
After four years, the account will close, and savers cannot reopen another Help to Save account.
Sarah Coles, personal finance analyst at Hargreaves Lansdown, praised the initiative: “This is a brilliant scheme, with government bonuses that are so generous that the returns cant be beaten by any other savings product.”
She added: “Its also super flexible, so it can fit in around your needs, which makes it ideal for people on low incomes.”
According to Government figures, approximately 517,000 Help to Save accounts have been opened over the past five years.
With around 5.7 million households across Britain now claiming Universal Credit, the expanded eligibility criteria could dramatically increase participation in the scheme.
Who is eligible?
You can open a Help to Save account if you’re receiving:
- Working Tax Credit
- Child Tax Credit – and you’re entitled to Working Tax Credit
- Universal Credit and you (with your partner if it’s a joint claim) had take-home pay of £793.17 or more in your last monthly assessment period
Someone’s take-home pay is their pay after deductions (such as tax or National Insurance).
If people get payments as a couple, they and their partner can apply for their own Help to Save accounts. They need to apply separately.
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From April 2025, this earnings threshold will drop dramatically to just £1 per month, making the scheme accessible to nearly all working Universal Credit claimants. The initiative has received a significant extension, with the closing date moved from April 2025 to April 2027.
Those eligible can open an account through the Government website, with the scheme remaining open to both Universal Credit and Working Tax Credit recipients.
Child Tax Credit claimants who are entitled to Working Tax Credit can also access the scheme.
Myron Jobson, Senior Personal Finance Analyst at Interactive investors, emphasised the scheme’s value: “On paper, Help to Save is a great initiative to help instill a culture of savings among the nation’s most cash-strapped individuals.”
He highlighted the exceptional returns available: “A 50 per cent savings bonus is too good a carrot to pass up” for those who can afford it.
The bonuses are structured to reward long-term saving, with Jobson noting: “The bonuses are paid after the first two years and again at the end of the four-year period.”
