If you’re looking for an extra way to build up some savings, the Government’s Help to Save account might be just the thing.
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Thanks to October’s Budget, this unique savings scheme will be sticking around longer and becoming more accessible, meaning even more people will be able to take advantage of it.
Here’s a breakdown of how Help to Save works, who’s eligible, and why it could be a great option for those on Universal Credit or Tax Credits.
How does ‘Help to Save’ work?
Help to Save is a savings scheme designed to help people on certain benefits put money aside, with the government matching part of what you save. For every £1 you save, the government adds 50p.
That’s a 50% return on your savings, which is unheard of for most savings accounts these days!
To get started, you’ll need to open a Help to Save account and deposit anywhere between £1 and £50 a month.
The account can be held for four years, and bonuses are paid out twice: after two years and again at the end of the four years.
Let’s say you put away the maximum of £50 each month.
By the end of the four years, you’ll have saved £2,400 of your own money, and the government will have added a total bonus of £1,200. That’s a real boost to your savings with minimal effort!
If you can’t save the maximum, no problem. Any amount you save will still qualify for the 50% bonus, even if you skip a month or save less some months.
For instance, saving just £25 a month over two years would still give you a £600 bonus!
More time to take advantage
Originally, the Help to Save scheme was set to end in April 2025. But with the latest Budget update, it has now been extended until April 2027.
This gives people two more years to jump on board and start building their savings with a little extra help from the government.
Expanded eligibility for Universal Credit claimants
The government has also relaxed the eligibility rules for Universal Credit claimants. Currently, you need to have earned at least £722.45 in your last monthly assessment period to qualify.
However, starting in April 2025, any Universal Credit claimant who has earned at least £1 from work can open a Help to Save account.
This change makes it possible for even more people to benefit from the scheme, including those working fewer hours or earning less each month.
How to open a ‘Help to Save’ account
Getting started with Help to Save is easy. Just visit the Help to Save website or call 0300 322 7093 to set up your account.
If you’re in a couple and receiving benefits as a household, each partner can open a separate Help to Save account, even if you claim benefits jointly.
This can double the benefits if both of you participate, giving each partner the opportunity to save and earn a bonus individually.
Be mindful of benefit limits
While Help to Save offers significant savings advantages, it’s essential to keep an eye on your overall savings if you receive other benefits.
If you’re on Universal Credit or Housing Benefit, your combined savings (including your Help to Save balance) shouldn’t exceed £6,000. If you go over this threshold, your benefits might be reduced.
However, for those on Working Tax Credit, there’s no impact from your Help to Save savings or bonuses, so you can save with a bit more peace of mind.
Why consider ‘Help to Save’?
With rising living costs, finding ways to save can be challenging, especially on a tight budget.
Help to Save makes it easier by offering a solid 50% bonus on whatever you can put aside, no matter how small.
And with recent changes, the scheme is now available to more people, for a longer period.
If you’re eligible, the Help to Save account could be a fantastic way to build up an emergency fund, save for future goals, or simply give yourself a bit of extra financial security.
It’s all about making small, regular savings that add up over time—and with the government chipping in, you can be sure your efforts won’t go unnoticed.
Ricky Willis is the original Skint Dad. A money-making enthusiast, father, and husband to Naomi. He is always looking for unique ways to earn a little extra.
