More people on Universal Credit eligible for savings boost

In a major change to the rules of Help to Save, people who claim Universal Credit and are in work can now open a Help to Save account. As long as you earn more than £1 per month you’ll be able to get a 50% tax-free bonus on your savings up to a value of £1,200 over four years.  

Previous rules meant you had to earn the equivalent of 16 hours at the National Living Wage. This means around 550,000 more people who claim Universal Credit can now open a Help to Save account.  

The scheme was set to close in 2025 but it has been extended by two years. This means if you are eligible you have until April 2027 to open your account. 

It is quick and easy to open an accountOpens in a new window through GOV.UK or the HMRC appOpens in a new window

If you claim Universal Credit and are in work, you can save between £1 and £50 into your Help to Save account each month for four years. Unlike a typical savings accounts, the Help to Save account doesn't pay interest, but instead it pays a tax-free government bonus.

If you keep paying into the savings account; at the two year and four-year mark, the government will pay a bonus of 50% of your highest balance throughout that time.  Find out more about how the account works in our guide Help to Save Explained.

Yes. Each month you can save up to a maximum of £50. If you save the maximum £50 per month it means after two years you would have saved £1,200 of your own money and would be eligible for the tax-free government bonus of £600. Continue to save the maximum amount and you’ll earn another government bonus of £600 at the four-year mark.  To find out more about how Help to Save works see our guide Help to Save Explained. 

Nothing. If you were eligible and opened a Help to Save account, it’ll stay open for the full four-year period. You only must be eligible on the day you apply.