The Department for Work and Pensions (DWP) has announced a helpful scheme called Help to Save, which offers a bonus of up to £1,200 for people on Universal Credit or Working Tax Credit. This savings plan is designed to support low-income earners who want to put away a small amount regularly and get rewarded for doing so.
In this article, we’ll break down everything you need to know – who can apply, how it works, and why you should consider joining if you’re eligible.
What Is Help to Save?
Help to Save is a government-backed savings scheme launched by the DWP. It encourages people on low incomes to save money by giving them a bonus of 50p for every £1 they save over four years.
If you save the maximum allowed under the scheme – which is £50 per month – you could earn up to £1,200 in bonus money by the end of the term.
The scheme is completely voluntary, and you can choose how much you want to save every month. You also won’t lose your money if you miss a month or need to stop saving.
Who Can Apply for The £1,200 Bonus?
To qualify for Help to Save, you need to meet at least one of the following conditions:
- You’re receiving Universal Credit and your monthly earnings were at least £722.45 in your last monthly assessment period.
- You’re receiving Working Tax Credit or Child Tax Credit, along with Working Tax Credit.
Even if your circumstances change, and you stop receiving these benefits later, you can still keep your Help to Save account and continue saving.
How Does the Bonus Work?
Here’s how the scheme pays out the bonus:
- After 2 years: You’ll get a 50% bonus on the highest amount you’ve saved. For example, if you saved £600, you’ll get a £300 bonus.
- After 4 years: You’ll get another 50% bonus, this time on the additional savings you’ve made in the last two years.
The maximum bonus you can receive over four years is £1,200 if you save £2,400 in total (that’s £50 per month for 48 months).
You can withdraw your savings at any time if needed, but it may reduce your final bonus.
How to Open a Help to Save Account
Opening a Help to Save account is easy and can be done online:
- Go to the official government website: www.gov.uk/help-to-save
- Sign in using your Government Gateway ID
- Follow the instructions to set up your account
Once your account is active, you can start saving from your bank account, debit card, or by standing order.
You’ll get updates on your balance and bonus status regularly.
Why Should You Use This Scheme?
This scheme is an easy way to build up savings without needing to commit large amounts of money. Many people on low incomes find it hard to save, but this scheme makes it more rewarding.
Here’s why Help to Save is worth considering:
- Government bonus: You get extra money just for saving.
- Flexibility: You can stop or skip saving if needed.
- Safe: Your money is secure with the government.
- No penalties: You won’t lose your bonus if your benefits stop.
Even if you can’t save £50 each month, saving just £10 or £20 can still give you a useful bonus over time.
Who Should Consider This?
- Single parents managing on Universal Credit
- Part-time workers earning low income
- Families receiving Working Tax Credit
- Anyone who wants to save safely with government support
This scheme is especially useful if you’re trying to plan for emergencies, school expenses, or just want a financial buffer.
Final Thoughts
If you’re getting Universal Credit or Working Tax Credit and struggling to save, the Help to Save scheme could be a simple way to grow your money with support from the government. With the possibility of earning up to £1,200, it’s worth checking if you qualify and opening an account.
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