Help to Save is the most generous savings deal the UK government runs — and it’s also the most overlooked. If you’re working and on Universal Credit, you can earn a guaranteed 50% bonus on what you put aside, paid by HMRC into your bank account on the second and fourth anniversary. Save the maximum and you walk away with a £1,200 bonus on top of £2,400 of your own money — a return no Cash ISA, regular saver or fixed bond can match.
Following the April 2025 expansion to all working Universal Credit claimants, around 3 million more people are now eligible. The Autumn Budget 2025 confirmed the scheme is being made permanent and will widen further in April 2028. Here’s how it works in 2026, who qualifies, and exactly how to claim the bonus.
What is Help to Save?
Help to Save is a government-backed savings account run by HMRC and held with NS&I. You can save any amount from £1 to £50 a month, totalling up to £600 a year and £2,400 over the four-year life of the account.
The clever bit is the bonus. There’s no monthly interest, but at the end of year 2 and year 4 HMRC pays you 50% of the highest balance you’ve held during that period. The bonuses are paid into your nominated bank account, not the Help to Save account itself, so you can spend them right away.
Who is eligible in 2026?
From 6 April 2025 the rules were simplified — you qualify if you are working and receiving Universal Credit, and earned at least £1 in the most recent assessment period before applying. There are no household income caps and no minimum hours.
- You must live in the UK (or be Crown servant/HM Forces overseas).
- You must be claiming Universal Credit and have earned income in the assessment period before you apply.
- Your partner can also open their own Help to Save account if they meet the rules separately.
- If you stop receiving Universal Credit later, you can keep your existing account and continue to earn the bonus on what you’ve saved.
Working Tax Credit and Child Tax Credit claimants were eligible before but, with tax credits being phased into Universal Credit, this route is closing for new applicants.
How the bonus actually works
The bonus is calculated on the highest balance you’ve ever held in the account during each two-year period — not your closing balance. That means if you save £50/month for 24 months and then withdraw it all, you still get the full bonus. But if you withdraw and don’t replace the money before year 4, the second bonus only counts the highest balance reached after the first bonus.
| What you pay in | Year 2 bonus | Year 4 bonus | Total bonus | Total back |
|---|---|---|---|---|
| £25/month for 4 years (£1,200) | £300 | £300 | £600 | £1,800 |
| £50/month for 4 years (£2,400) | £600 | £600 | £1,200 | £3,600 |
| £50/month for 2 years then stop | £600 | £0 | £600 | £1,800 |
| Save £50/month, withdraw at year 2 | £600 | £0 (no new high) | £600 | £1,800 |
| Save £50/month all 4 years, withdraw nothing | £600 | £600 | £1,200 | £3,600 |
Help to Save vs Cash ISA vs Regular Saver
The 50% bonus on Help to Save is the equivalent of an effective return of around 20–25% AER over the life of the account — multiples of what any UK savings product can pay. If you’re eligible, do this before any other savings product.
| Help to Save | Best Cash ISA | Best Regular Saver | |
|---|---|---|---|
| Effective return | ~20–25% effective AER | ~4.5% AER | ~7–8% AER (capped balance) |
| Maximum monthly | £50 | £20,000/year (any pattern) | £200–£500/month |
| Term | 4 years (account closes) | Open-ended | 12 months |
| Tax on returns | None (bonus is tax-free) | None | Possible (interest, not capital) |
| Affects benefits? | Yes — see warning below | Yes if savings > £6,000 (UC) | Yes if savings > £6,000 (UC) |
| Withdraw any time? | Yes — to nominated bank account | Yes | Often penalised |
Important: how Help to Save interacts with Universal Credit
This is where most people get caught out. Money in a Help to Save account counts towards your Universal Credit capital limits, the same as money in any other savings account.
- If your total household savings stay below £6,000, your UC isn’t affected at all.
- Between £6,000 and £16,000, UC is reduced by £4.35 per month for every £250 (or part of) above £6,000.
- Above £16,000, you stop being eligible for UC entirely.
The maximum you can hold in a Help to Save account on its own is £2,400 — well below the £6,000 floor. So unless you have substantial savings elsewhere, this won’t be a problem. But check your full picture before piling in.
The bonus payments themselves are not counted as income for Universal Credit, so receiving the bonus won’t reduce your monthly UC payment.
How to apply for Help to Save
- Sign in via Government Gateway at gov.uk/get-help-savings-low-income using your Universal Credit credentials.
- HMRC checks your eligibility automatically — no paperwork.
- Once approved, NS&I sets up the account and sends a welcome pack with sort code and account number.
- Set up a standing order from your main bank account for any amount £1–£50/month so you never forget.
- If you’d rather call, the HMRC Help to Save helpline is 0300 322 7093 (Mon–Fri, 10am–6pm).
Strategy: how to get the maximum bonus with the least lock-in
- Pay in £50 every month from day one if you possibly can — the bonus is calculated on the highest balance, so getting to that high mark early matters.
- Don’t panic-withdraw early. A withdrawal won’t undo the running highest-balance figure used for the year-2 bonus, but it will reset the high for the year-4 calculation.
- If money is tight, save what you can. Even £10/month earns a £120 bonus over four years — there is no minimum.
- Consider stopping after year 2. If your circumstances change, you can leave the account dormant after the first bonus and still claim the second on the year-2 high.
- Move the bonus into a high-interest home. When the bonus lands in your bank account, transfer it straight to a Cash ISA or easy-access saver paying 4%+ so it keeps working.
Frequently asked questions
Is the Help to Save bonus taxable?
No. Both the bonus and any (very limited) interest are completely tax-free, and they don’t count as income for Universal Credit purposes either.
Can I have a Help to Save account and a Cash ISA?
Yes. Help to Save isn’t an ISA, so it’s completely separate from your £20,000 ISA allowance. Most eligible people should fill Help to Save first because the effective return is so much higher.
What happens if I miss a month?
Nothing — you can pay in any amount from £1 to £50 in any month, and there’s no penalty for skipping. You just earn slightly less bonus than you would by maxing every month.
Can I close the account early?
You can withdraw your money any time and close the account, but if you close before the year-2 anniversary you forfeit any bonus. Once you close the account, you can’t reopen one — only one Help to Save account per person, ever.
What if I stop being on Universal Credit during the four years?
Your account stays open and you can keep saving and earning bonuses for the full four years. The eligibility test is only at the point of opening.
Is my money safe in Help to Save?
Yes — the account is held with NS&I, which is 100% backed by HM Treasury. Every penny is protected without any FSCS limit.
The bottom line
If you’re working and on Universal Credit, Help to Save is the highest-return savings product the UK has to offer in 2026 — and possibly the only piece of “free money” you’ll ever get from HMRC. Open the account, pay in what you can afford, and treat the bonus as a tax-free top-up to whatever savings you build elsewhere. With the scheme made permanent and expanding again in 2028, there’s never been a better time to start.
Karl Johnson is the editor of GetSmartSaver.Uk. Information verified against gov.uk, NS&I and HMRC sources, May 2026. Help to Save rules can change — always check eligibility on gov.uk before applying.