Help to Save Guide UK (£1,200 Bonus for Low-Income Savers 2026)

What Is Help to Save

Help to Save was launched in 2018 as a government-backed savings scheme designed to encourage low-income workers and benefit claimants to build a savings habit. It is a tiered savings account that runs for four years, split into two two-year periods. At the end of each two-year period, HMRC calculates the highest balance you achieved and pays you a bonus worth 50% of the amount you saved during that period. The bonus is paid directly into your bank account, not into the Help to Save account. You do not pay tax on the bonus. You can hold only one Help to Save account at a time, and the scheme is scheduled to remain open to new applicants until at least 2028. The account is managed through your personal tax account on GOV.UK, and you can check your balance, deposit history, and bonus projections online at any time. Unlike a standard savings account, Help to Save pays no interest — the bonus is the entire benefit. For someone saving the full £50 every month, the total deposits over four years would be £2,400, with total bonuses of £1,200, giving an effective return of 50% on the money saved.

Who Is Eligible for Help to Save

You are eligible for Help to Save if you live in the UK (including Scotland, Wales, and Northern Ireland) and receive Universal Credit with earned income of at least £1 in a monthly assessment period during the previous calendar month, or you receive Working Tax Credit (including any amount of Child Tax Credit). You cannot open an account if your only tax credit is Child Tax Credit without Working Tax Credit, unless you also receive Universal Credit with qualifying earnings. If you are self-employed, earnings from self-employment count towards the eligibility threshold. Joint Universal Credit claims mean either claimant can open an account, but each person can have only one account. There is no upper age limit, but you must be aged 16 or over. The account can be opened even if you have other savings or ISAs. If you stop receiving Universal Credit or Working Tax Credit after opening the account, you can continue saving for the remainder of the four-year term and still receive any bonuses due — your eligibility is only checked at the point of application. Check your eligibility via your government gateway account at gov.uk/help-to-save.

How the 50% Bonus Works

The Help to Save bonus is calculated on savings in each two-year period, not on the total saved over four years. In year one and two, you can save up to £50 per calendar month (£2,400 over four years). At the end of the first two-year period, HMRC looks at the highest balance your account reached and pays you 50% of the difference between your highest balance and your starting balance. For example, if you save £50 every month for two years (total £1,200) and your highest balance is £1,200, your bonus would be £600. You can then withdraw some or all of the bonus and continue saving for the second two-year period. At the end of the four-year term, you get a second bonus of 50% of the amount saved during years three and four, up to an additional £600. The total maximum bonus across both periods is £1,200. Bonuses are paid into your nominated bank account within approximately 8 weeks of the anniversary date. You do not need to do anything to claim the bonus — HMRC calculates it automatically based on your savings records. There is no interest paid on the account itself, so the bonus is the only growth mechanism.

How to Open and Manage a Help to Save Account

You open a Help to Save account online through your GOV.UK personal tax account. You need a government gateway user ID and password — if you do not have one, you can create it during the application process. You also need your National Insurance number and a UK bank account (for bonus payments, not for deposits). The application takes around 10 minutes. Once your account is open, you deposit money using a debit card, standing order, or bank transfer into the NS&I-managed account. You can set up a standing order from your bank to make regular monthly deposits. You can check your balance, transaction history, and projected bonus at any time by logging in. You can withdraw money at any time, but withdrawing reduces the highest balance used to calculate your bonus. There is no penalty for withdrawing, but if you empty the account and stop saving, you will not earn any further bonus. If you stop saving temporarily, you can restart later within the four-year window. If you lose eligibility for UC or Tax Credits, you keep the account open and continue to receive any bonuses earned.

Help to Save vs ISA vs Regular Savings

Help to Save offers a guaranteed 50% return on savings — far higher than any ISA or standard savings account. A Cash ISA paying 5% interest on £50/month would generate roughly £60 of interest over two years, compared to a Help to Save bonus of up to £600. However, Help to Save has a low £50/month cap, no interest, and requires eligibility via Universal Credit or Tax Credits. ISAs are available to anyone, offer higher contribution limits (£20,000 for 2026), and can hold cash or investments, but do not provide a government bonus. Regular savings accounts typically pay 3–7% interest but are often limited to 12-month terms with fixed monthly deposits. Help to Save is best used as a complement to an ISA — save up to £50/month into Help to Save for the bonus, then put any additional savings into a Cash ISA or stocks and shares ISA. The Help to Save bonus is tax-free and does not count towards your ISA allowance. For low-income savers, the guaranteed 50% bonus makes Help to Save the most efficient first savings option available. See our Stocks and Shares ISA guide → for investment alternatives.

What Happens If Your Circumstances Change

One of Help to Save's strengths is its flexibility when your situation changes. If you stop receiving Universal Credit or Working Tax Credit, you can keep your account open and continue saving for the remainder of the four-year term. You will still receive any bonuses earned, even if you are no longer eligible to open a new account. If you move abroad, you cannot continue paying into the account (UK residency is required during the savings period), but any bonus earned up to that point will still be paid. If you die, your account is closed and any bonus earned is paid to your estate. If you separate from a partner with whom you made a joint Universal Credit claim, each person keeps their own account. If you start a new job or your income rises significantly, you can remain in the scheme as long as you were eligible when you opened the account. You cannot transfer a Help to Save account to another person. If you have a Universal Credit overpayment or debt to DWP, the bonus payment is not taken to offset it. The account automatically closes after four years, at which point you receive your final bonus and remaining balance.

FAQs

Can I have a Help to Save account and an ISA at the same time?

Yes. Help to Save is separate from your ISA allowance. You can hold a Cash ISA, Stocks and Shares ISA, or Lifetime ISA alongside a Help to Save account. The bonus does not count towards your £20,000 annual ISA limit.

What happens if I miss a month of saving?

Nothing. There is no penalty for missing months. You can save whenever you want, as long as total deposits do not exceed £50 in any calendar month. The bonus is based on your highest balance reached, not on consistent monthly saving.

Is the Help to Save bonus tax-free?

Yes. The bonus is paid tax-free and does not need to be declared on your Self Assessment tax return. It is also disregarded for means-tested benefit calculations, so it will not affect your Universal Credit or Tax Credits.

Can I use Help to Save if I am self-employed?

Yes. Self-employed earnings count towards the Universal Credit earnings threshold. As long as you meet the eligibility criteria (£1 of earned income in a UC assessment period, or receive Working Tax Credit), you can open an account.

What if my Help to Save account is lost or I forget about it?

Your account is managed through your GOV.UK personal tax account and NS&I. If you lose access, you can recover it through the government gateway website. Unclaimed bonuses are held by HMRC and can be claimed later. Contact HMRC if you think a bonus is missing.