The Help to Save Scheme is designed to help low-income earners in the UK struggle to build savings due to financial pressures, a lack of awareness about government support schemes, and uncertainty about making the most of available resources. Unexpected expenses can increase reliance on credit, debt cycles, and long-term economic instability without a financial safety net without a financial safety net.
The UK government introduced the Help to Save scheme, a savings initiative designed to encourage and reward consistent saving habits among eligible individuals to address this issue to address this issue. Through this scheme, participants can earn a generous government bonus of up to 50% on savings, helping them grow their money significantly over four years. Despite its benefits, many eligible individuals either don’t know about the scheme or are unsure how to use it effectively.
In this guide, we will break down the Help to Save scheme, explaining how it works, who qualifies, and why it’s a valuable tool for financial security. We’ll provide step-by-step guidance on opening an account, making the most of the savings bonuses, and structuring deposits for maximum benefit. Additionally, we will explore:
- How to fit Help to Save into your broader financial goals – whether you’re building an emergency fund, saving for a specific purpose, or improving your overall financial health.
- Practical strategies to make regular savings manageable, even on a tight budget.
- Common concerns and misconceptions, including what happens if you can’t save every month.
- Real-life success stories showcasing how individuals have used the scheme to transform their finances.
By the end of this guide, you’ll understand how the Help to Save scheme can serve as a stepping stone toward long-term financial stability and greater peace of mind. Let’s get started!
What is the Help to Save Scheme?
The Help to Save scheme is a government-backed savings initiative to support low-income earners in building a financial safety net. It offers a generous 50% bonus on savings, making it one of the most beneficial savings schemes available for those eligible.
Key Features of the Help to Save Scheme
✅ Eligibility: Available to individuals receiving Universal Credit (with an earnings threshold) or Working Tax Credit. You can check if you qualify via the official GOV.UK eligibility tool.
✅ Deposit Limits: Participants can deposit up to £50 per month into their Help to Save account, but saving every month is not required saving every month is not required. This flexibility allows savers to contribute according to their financial situation.
✅ Government Bonus:
- The scheme provides a 50% bonus on the highest balance saved.
- Bonuses are paid twice over four years:
- After 2 years: 50% of the highest balance saved in that period.
- After 4 years: Another 50% bonus on any additional savings made beyond the first two years.
- Example: If you save a maximum of £2,400 over four years, you will receive £1,200 in bonus payments from the government.
✅ Withdrawal Flexibility: Unlike many savings schemes, funds can be withdrawn anytime without losing the accrued bonus. However, frequent withdrawals may reduce the maximum potential bonus since it is based on the highest saved balance.
✅ Account Duration: The Help to Save scheme runs for four years from the opening date, after which the account automatically closes. You can’t reopen or extend it but can transfer the savings elsewhere.
✅ Where to Apply: Applications for the Help to Save scheme can be made online through www.GOV.UK or by calling HMRC.
Why is the Help to Save Scheme Important?
Many low-income individuals struggle to build savings due to financial pressures and unpredictable expenses. The Help to Save scheme provides a structured, risk-free way to save, with a significant government boost.
- It encourages a habit of regular saving, even in small amounts.
- It provides a financial cushion for emergencies.
- It helps individuals move toward long-term financial security.
The scheme is an ideal first step towards better money management for those struggling to save.
Useful External Links & Resources
🔗 Official Help to Save Scheme Information (GOV.UK)
https://www.gov.uk/get-help-savings-low-income
🔗 Check Your Eligibility for Help to Save (GOV.UK)
https://www.gov.uk/help-to-save/how-it-works
🔗 Help to Save Application Portal (GOV.UK)
https://www.gov.uk/sign-in-help-to-save
🔗 MoneyHelper Guide on Help to Save (Independent Advice on How to Use the Scheme)
https://www.moneyhelper.org.uk/en/savings/types-of-savings/help-to-save
Real-Life Success Stories
Many participants have already used the scheme to strengthen their finances. Here are two detailed success stories:
Case Study 1: Sarah, a Single Mum from Manchester
Sarah, a part-time retail worker and single mother of two, found it difficult to build savings due to the daily demands of raising a family on a tight budget. However, she decided to sign up for Help to Save in 2019 after learning about its benefits through a community financial workshop.
How She Made It Work:
- Set up a standing order of £30 per month, ensuring she stayed committed to saving.
- Used cashback earnings from online shopping to top up her deposits.
- Adjusted her budget slightly by meal planning and cutting back on non-essential subscriptions.
The Outcome:
- After two years, Sarah had saved £720, earning a £360 government bonus.
- By year four, her savings grew to £1,440, with an extra £720 in bonuses.
- She used part of her savings to cover an urgent car repair, preventing her from taking out a high-interest payday loan.
- The remaining funds provided peace of mind, helping her handle unexpected household expenses.
Case Study 2: Ahmed, a Care Worker from Birmingham
Ahmed works full-time in a care home and lives on a modest salary. Saving money had always been challenging, but he wanted to build a deposit for his first home. He discovered the Help to Save scheme through a financial literacy program at work.
His Saving Strategy:
- Rounded up the spare change from everyday purchases and transferred the extra amount into his Help to Save account.
- Deposited an average of £40 per month—sometimes contributing less during tight months.
- Used money earned from overtime shifts to boost his contributions when possible.
The Results:
- By the end of four years, he had saved £1,800, receiving £900 in government bonuses.
- This total of £2,700 became his initial deposit for a first-time buyer savings account.
- Ahmed’s improved savings habits helped him budget more effectively, reducing his reliance on credit cards for emergencies.
Help to Save Scheme Eligibility?
The Help to Save scheme is designed to support low-income individuals by providing a government-backed savings incentive. Not everyone can apply, but upcoming changes will make the scheme more widely accessible.
Current Eligibility Criteria
To qualify for a Help to Save account, you must:
✔️ Be a UK resident (or a Crown servant or armed forces member posted overseas).
✔️ Receive one of the following benefits:
- Working Tax Credit (even if you receive just £1).
- Universal Credit and have had individual earnings of at least £658.64 in your last assessment period (usually the last month before applying).
- This earnings threshold applies to individuals, not households. So, if a couple is on Universal Credit, each partner must meet the earnings threshold separately.
✔️ Not already have a Help to Save account (you can only open one per person).
🔹 Important Notes on Eligibility
- Even if you stop receiving benefits, your Help to Save account remains open for four years.
- You don’t need to deposit money every month—you can save whenever it suits you.
Upcoming Changes in April 2025
From April 2025, the UK government will expand eligibility criteria to include all Universal Credit claimants who have earned at least £1 in their last assessment period.
This significant policy shift will increase access to the scheme, allowing more low-income individuals to benefit from the 50% government savings bonus.
Why is this change significant?
- More people working part-time or with fluctuating incomes will qualify.
- It removes the £658.64 minimum earnings threshold, making the scheme fairer for those on lower wages or in unpredictable work.
- It offers more Universal Credit claimants a financial boost, helping them build long-term financial security.
🔹 Who will benefit the most from this expansion?
- Part-time workers who earn less than £658.64 a month.
- Freelancers and gig economy workers with irregular incomes.
- Carers and those in zero-hour contracts previously didn’t meet the earnings threshold.
- Self-employed individuals who have fluctuating earnings.
How to Check Your Eligibility & Apply
If you’re unsure about whether you qualify, you can:
📌 Use the GOV.UK eligibility checker:
🔗 https://www.gov.uk/get-help-savings-low-income
📌 Apply for Help to Save online:
🔗 https://www.gov.uk/sign-in-help-to-save
📌 Call HMRC for assistance: If you need help applying, contact the Help to Save helpline at 0300 322 7093.
Step-by-Step Guide to Applying
Applying is quick and easy if you’re eligible for the Help to Save scheme. Follow these steps to set up your account and save with the 50% government bonus.
Step 1: Check Your Eligibility
✅ Before applying, make sure you meet the following criteria:
- You live in the UK (or are a Crown servant or armed forces member posted abroad).
- You receive a Working Tax Credit or Universal Credit (meeting the income threshold).
- You have not previously opened a Help to Save account (only one per person is allowed).
🔹 Check your eligibility online:
🔗 https://www.gov.uk/get-help-savings-low-income
Step 2: Apply Online or By Phone
📌 Option 1: Apply Online (Recommended)
- Visit the official Help to Save website:
🔗 https://www.gov.uk/sign-in-help-to-save
- Click ‘Apply now’ and sign in using your Government Gateway ID.
- If you don’t have a Government Gateway account, you can create one during the process. You’ll need:
- Your National Insurance Number
- Proof of identity (e.g., a passport or payslip)
- Follow the instructions, confirm your details, and complete your application.
📌 Option 2: Apply by Phone
- Call the Help to Save helpline at 0300 322 7093 (Monday to Friday, 10 am – 6 pm).
- Provide your National Insurance number and other requested details.
- A customer service agent will guide you through the process.
Step 3: Set Up Your Deposits
✅ Once your account is open, you can start saving right away.
- You can deposit up to £50 per month (but there’s no requirement to save every month).
- Payments can be made via debit card, standing order, or bank transfer.
🔹 To set up a standing order (automatic savings):
- Log in to your online banking.
- Set up a monthly transfer to your Help to Save account.
- Use the sort code and account number provided when you opened your account.
Step 4: Track Your Savings & Bonuses
- You can log in to your Help to Save account anytime to check your balance.
- Your 50% government bonus will be paid after 2 years and again after 4 years.
- Remember: You can withdraw anytime, but taking money out will lower your highest balance and reduce your bonus.
Step 5: Plan for the Future
🚀 Maximise your savings strategy by:
✔️ Keeping your money in the account as long as possible to earn the biggest bonus.
✔️ Treating the scheme as a rainy-day fund to avoid unnecessary withdrawals.
✔️ Once the 4-year period ends, consider transferring your savings to an ISA or another savings account to continue growing your money.
Need More Help?
📌 Help to Save Customer Support:
📞 Call 0300 322 7093 (Monday to Friday, 10 am – 6 pm)
📧 Visit GOV.UK: https://www.gov.uk/help-to-save
Strategies to Maximise Your Bonus
To get the most out of the Help to Save scheme, consider using innovative saving strategies that help you consistently reach the £50 monthly limit without straining your budget. Here are four key strategies to help you build your balance efficiently and maximise your 50% government bonus.
1. Use the Penny-a-Day Challenge 📈
The Penny-a-Day Challenge is a simple and fun way to build savings without noticing the impact on your daily budget.
How It Works:
- Start by saving 1p on Day 1, 2p on Day 2, 3p on Day 3, and so on.
- By Day 365, you’ll be saving £3.65.
- At the end of the year, you’ll have saved £667.95—enough to hit the £50 monthly Help to Save limit consistently!
🔹 Bonus Tip: Use an app like Plum, Chip, or Monzo Pots to automate this challenge so you don’t have to think about it daily.
2. Automate Your Savings 💳
The easiest way to stay consistent is to set up an automatic transfer into your Help to Save account each month.
How to Do It:
- Set up a standing order from your main bank account to Help to Save.
- Choose a date right after payday so you “pay yourself first.”
- Even if you start with just £10 per month, it will build a strong habit over time.
🔹 Bonus Tip: If your income is unpredictable, set up a weekly direct debit instead of monthly (e.g., £12.50 per week = £50/month).
3. Use Cashback Apps & Reward Points 💰
Why not use free money from cashback rewards to grow your savings?
Best Cashback Apps to Use:
✔️ TopCashback / Quidco – Get cashback when shopping online & transfer rewards to Help to Save.
✔️ Airtime Rewards – Earn cashback from everyday spending at supermarkets and shops.
✔️ Receipt Scanning Apps (e.g., Shoppix, SnapMyEats) – Get paid for uploading your shopping receipts.
🔹 Bonus Tip:
- Once they hit £50, cash out cashback earnings and deposit them directly into your Help to Save account.
- Use loyalty points from Tesco Clubcard, Nectar, and Boots Advantage to reduce shopping costs and free up cash for savings.
4. Reduce Small Expenses & Redirect the Savings ✂️
Many people spend small amounts daily without realising how much adds up over a month. You can redirect that money into your Help to Save account by cutting out unnecessary costs.
Quick Wins to Free Up £50 Per month:
✅ Cancel unused subscriptions – Check your bank statements for forgotten memberships.
✅ Make coffee at home – Swapping one café visit per week (£3 x 4 weeks = £12) helps build savings.
✅ Switch to a budget supermarket – Dropping one branded item per shop saves £5+ per week.
✅ Reduce takeaway & meal deals – Preparing lunch at home can save £20+ per week.
✅ Use discount codes & vouchers – Sites like Honey, VoucherCodes, and Student Beans help reduce spending.
🔹 Bonus Tip: Transfer any spending cuts immediately to Help to Save so the money doesn’t get spent elsewhere.
Small Changes, Big Bonuses 🎯
By combining these four strategies, you can consistently hit the £50 limit and earn the full 50% bonus, maximising your savings without financial stress.
🚀 Example Plan for Hitting £50/Month:
- Penny-a-Day Challenge – £55/month (more than enough!)
- Cashback earnings – £10/month from TopCashback
- Cutting 2 takeaway coffees – £12/month
- Using a discount supermarket – £15/month saved
Total Saved = £50+ monthly ✅
By following these simple steps, you’ll secure up to £1,200 in free bonus money over 4 years—a fantastic boost to your financial security!
Common Concerns and Misconceptions
Many people hesitate to sign up for the Help to Save scheme because they are concerned about how it might affect their benefits, accessibility of funds, or the security of their savings. Below, we address some of the most common misconceptions and provide reassurance on key aspects of the scheme.
Will this affect my benefits?
One of the biggest worries for those on Universal Credit or Working Tax Credit is whether saving money in a Help to Save account will reduce their benefits.
✅ Good news! The Help to Save scheme bonuses do not count as income and will not affect your Universal Credit or Tax Credit payments. This means:
- The 50% government bonus is yours to keep, regardless of how much you save.
- Your savings balance will not impact your benefit entitlement as long as your total savings (across all accounts) stay below £6,000 (the savings threshold for means-tested benefits).
💡 Example: If you save the full £2,400 over 4 years and earn a £1,200 bonus, this extra money will not reduce your benefit payments.
Can I withdraw my savings?
Another common misconception is that once you deposit money into a Help to Save account, you won’t be able to access it until the scheme’s end.
✅ Reality: You can withdraw money anytime if you need it. However, there is a catch:
- Withdrawals may reduce your bonus because the 50% government bonus is based on the highest balance you’ve saved.
- Your maximum bonus potential may decrease if you withdraw before the 2-year or 4-year bonus payout.
💡 example:
- You save £600 in the first year but withdraw £400 before your 2-year bonus is paid.
- Your bonus will be calculated at £200 (the highest remaining balance) instead of the complete £600.
- You would only receive £100 (instead of £300).
🚀 Tip: If possible, only withdraw in emergencies and try to keep your balance high until the bonus payments are made.
Is my money safe with the Help to Save Scheme?
Some savers worry about the security of their money, especially with online scams and financial risks in the news.
✅ Rest assured, your savings are 100% safe. The Help to Save scheme is:
- Government-backed – Your money is protected by the UK government.
- Not affected by bank failures – Unlike standard savings accounts, your deposits and bonuses are guaranteed.
- Secure and managed by HMRC – You can access your account via the official GOV.UK website, ensuring top-level security.
💡 Example: Even if the bank holding your Help to Save account were to collapse, the government would still fully protect your savings and bonus.
Integrating Help to Save Scheme with Other Financial Goals
The Help to Save scheme isn’t just about earning a government bonus—it’s a stepping stone toward financial security and intelligent money management. Whether building a safety net, working towards a major purchase, or strategically combining it with other savings schemes, you can use your Help to Save funds wisely to improve your financial future.
Here are three powerful ways to make the most of your savings:
1. Use the Help to Save Scheme to Build an Emergency Fund for Unexpected Expenses 🚨
Life is full of surprises—some good, some costly. An emergency fund is a financial safety net, helping you cover unexpected expenses without relying on credit cards, overdrafts, or payday loans.
✅ Why It’s Important:
- It covers urgent car repairs, home maintenance, and medical expenses.
- Provides peace of mind during unexpected job loss or income drops.
- Reduces reliance on debt, helping you avoid interest payments and financial stress.
💡 How to Do It:
- Treat your Help to Save account as a dedicated emergency savings fund.
- Keep the money untouched until you genuinely need it.
- Once your 4-year term ends, transfer your balance to a high-interest savings account to keep your emergency fund growing.
🚀 Pro Tip: Experts recommend saving at least three to six months’ essential expenses in an emergency fund. Even if you can’t reach that target immediately, Help to Save is a great way to start.
2. Save Towards a Major Purchase Like a Car or Home Deposit 🚗🏡
Suppose you have a significant financial goal, such as buying a car, upgrading your home, or making a substantial purchase. In that case, the Help to Save scheme can help you reach your target faster.
✅ Why It’s a Great Option:
- The 50% government bonus effectively boosts your savings, reducing the amount you need to save yourself.
- It provides structured, consistent savings over 4 years, making planning significant expenses easier.
- The flexibility of withdrawals allows you to access funds whenever you’re ready to purchase.
💡 How to Do It:
- Set a realistic goal (e.g., saving £2,400 over 4 years for a car deposit).
- Stick to the £50 monthly deposit limit to maximise your bonus.
- Once the bonus is paid, transfer the total amount to a savings account or a specific goal fund to make your purchase.
🚀 Pro Tip: If you’re saving for a house deposit, consider pairing Help to Save with a Lifetime ISA (LISA) (more on that below) for even more significant benefits.
3. Combine the Help to Save Scheme with Other Government Savings Schemes Like the Lifetime ISA (LISA) 📈
The Help to Save scheme can be combined with other government-backed savings programs to maximise financial benefits.
✅ Why Combine Help to Save with a Lifetime ISA?
- A Lifetime ISA (LISA) allows you to save up to £4,000 per year, with a 25% government bonus (up to £1,000 per year).
- LISAs can be used to buy your first home or as long-term retirement savings.
- You get the best of both worlds by using Help to Save for short-term savings and a LISA for long-term growth.
💡 How to Do It:
- First, maximise your Help to Save (£50 per month) to earn the full 50% bonus.
- Once your 4-year Help to Save term ends, transfer your savings into a Lifetime ISA (if eligible) to start earning the LISA’s 25% annual bonus.
- If your goal is homeownership, you can boost your deposit significantly using Help to Save and a LISA.
🚀 Pro Tip: If you’re under 40 and planning to buy your first home, opening a Lifetime ISA early is smart since you can contribute until age 50 and benefit from annual government bonuses.
The Help to Save scheme is more than just a savings account—it’s a powerful tool to help secure your financial future. Whether building an emergency fund, saving for a big purchase, or strategically combining it with other government incentives, using your Help to Save account wisely can impact your financial well-being.
Common Mistakes to Avoid
Not saving the full £50 per month and missing maximum bonuses.
One of the biggest mistakes people make with the Help to Save scheme is not taking full advantage of the £50 monthly limit. Since the government provides a 50% bonus based on the highest amount saved, any unutilised money means leaving free money on the table. If you only save £20 a month instead of £50, your bonus will be much lower than you could have earned. Over four years, this could mean hundreds of pounds lost.
To avoid this, it’s important to prioritise saving regularly, even if it means making minor adjustments to your budget. Consider cutting out non-essential expenses, like takeaway coffees or unused subscriptions, and redirecting that money into your Help to Save account. Another helpful strategy is automating your savings by setting up a standing order to ensure that money is deposited every month without you having to consider it. If saving the full £50 seems overwhelming, increase your contributions gradually—starting at £20 and working up to the full amount over time. Every pound counts, and making small sacrifices now can result in a much larger financial reward later.
Withdrawing Too Often and Reducing Overall Savings
Another common mistake is frequent withdrawals from your Help to Save account, which can significantly impact the total bonus you receive. The 50% bonus is based on your highest balance over two years, so if you withdraw money, it lowers your highest balance and reduces the amount the government calculates your bonus on. For example, if you save £1,000 but then withdraw £500, your bonus will be based on the remaining £500 instead of the full amount, costing you £250 in lost bonus money.
To prevent this, it’s essential to treat your Help to Save account as a protected fund, similar to an emergency savings account. Try to only withdraw money if it’s a genuine emergency rather than for everyday expenses or impulse purchases. If you need extra cash, consider other savings options before tapping your Help to Save account. Using budgeting apps or tracking your expenses more closely can also help reduce unnecessary spending, making it easier to leave your Help to Save balance untouched until the bonus is awarded.
Waiting Too Long to Apply and Missing Out on Potential Years of Savings
The Help to Save scheme is a limited-time opportunity, and delaying your application means missing out on valuable savings and bonuses. Many people hesitate to apply because they assume they won’t be able to save consistently. Still, even small contributions can make a big difference over time. Since the scheme runs for four years from the opening date, every month you delay is a missed opportunity to grow your savings with government support.
If you’re eligible, the best time to apply is now. Even if you can’t save the full £50 per month immediately, opening an account as soon as possible allows you to start building your savings habit and benefiting from the bonus structure. The sooner you start, the more potential government bonus money you can earn over time. Additionally, with upcoming changes in April 2025 that expand eligibility to more Universal Credit claimants, more people than ever will be able to take advantage of this once-in-a-lifetime scheme. Don’t wait too long—every month matters when building financial security.
The Help to Save scheme is an incredible opportunity to grow your savings risk-free with a 50% government bonus. Whether you aim to build an emergency fund, pay off debt, or create financial security, every pound saved makes a difference.
✅ Check your eligibility ✅ Set up your account ✅ Start saving and claim your free bonus!
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