Help to Save is set for a significant eligibility change that could make the government-backed savings scheme available to many more people receiving Universal Credit.
The scheme allows eligible savers to put aside up to £50 a month and potentially receive a government bonus of up to £1,200 over four years. Under the planned changes, all Universal Credit claimants are expected to become eligible from April 2028, including people who are not working.
The change could expand access to the scheme by around 1.5 million households, according to the government.
Help to Save has already attracted more than 650,000 account holders. But while the headline £1,200 bonus may catch attention, the way the bonus is calculated is important. Savers do not simply receive 50p from the government for every pound deposited across the full four years.
Eligibility
Help to Save is intended to help people on lower incomes build a financial cushion.
Under the current rules, a person generally needs to receive Universal Credit and have earned at least £1 in take-home pay during their most recent monthly assessment period.
That means some Universal Credit claimants who are not working cannot currently open a Help to Save account.
The rules are scheduled to change from April 2028. Under the planned expansion, all Universal Credit claimants will be eligible to apply, including those who do not have earnings from employment.
The GOV.UK Help to Save guidance provides information about the scheme, including its eligibility requirements and savings limits.
The government estimates that removing the earnings requirement could make approximately 1.5 million additional households eligible.
Savings
The scheme allows participants to save between £1 and £50 during each calendar month.
There is no requirement to deposit money every month. Someone who cannot afford the full £50 can contribute a smaller amount or skip a month altogether.
A person saving the maximum £50 every month for four years could deposit a total of £2,400.
The government can provide a bonus worth up to £1,200 under the scheme’s rules. That maximum amount represents half of the potential £2,400 saved over four years.
However, the bonus calculation is more complicated than simply adding 50% to all deposits.
The amount a saver receives depends on the highest balance reached during specific periods of the account.
Bonus
Help to Save provides bonuses at two points during the four-year account period.
The first bonus is paid after two years. It is calculated using the highest balance achieved during the first two years.
A second bonus is paid when the account reaches the end of its four-year term. This payment is based on the increase in the highest balance between the first two years and the final two years.
As a result, the timing of deposits and withdrawals can affect the amount of bonus received.
Someone who consistently saves the maximum amount and reaches the relevant balance levels can qualify for the maximum government contribution. But simply depositing £2,400 does not automatically guarantee a £1,200 bonus in every circumstance.
The Money and Pensions Service also provides information about Help to Save and how the scheme works.
Withdrawals
Help to Save account holders can withdraw money when they need it.
That flexibility can be useful for households dealing with unexpected expenses, but taking money out can affect the bonus because the scheme uses highest-balance calculations.
For example, if a saver builds up a balance and later withdraws a substantial amount, the withdrawal can influence the balance used when calculating a bonus.
This means the account combines two features that can sometimes pull in different directions: it allows access to savings when needed, while its bonus structure encourages people to maintain their savings.
Savers therefore need to consider both their immediate financial needs and the possible effect of withdrawals on future bonus payments.
Changes
The planned April 2028 changes are not limited to eligibility.
Help to Save is also expected to become available through a wider range of financial providers. Banks, building societies and credit unions will be able to offer the scheme directly to qualifying customers under the planned arrangements.
The expansion is intended to make the account easier to access and increase the number of households able to use the government savings incentive.
The government has described the scheme as a way to help people receiving Universal Credit build savings while receiving a 50% government bonus on qualifying savings.
The GOV.UK Help to Save announcement provides further details about the planned expansion and eligibility changes.
Participation
More than 650,000 people are now reported to have Help to Save accounts.
Figures discussed on BBC Radio 4’s Moneybox programme also indicated that more than £670 million had been deposited into accounts since the scheme began.
Another notable figure is the proportion of account holders saving the maximum monthly amount. Recent figures indicate that around 94% of savers are putting away the full £50 each month.
For someone who maintains that contribution for four years, total personal deposits could reach £2,400.
Subject to the scheme’s bonus rules, the government contribution could then reach a maximum of £1,200.
These figures illustrate the potential value of the scheme, but they should not be interpreted as a guaranteed return for every account holder. Individual circumstances, balances and withdrawals can affect the final bonus.
Planning
For people who already meet the eligibility requirements, Help to Save provides a way to build an accessible savings pot while potentially receiving a government contribution.
For Universal Credit claimants who do not currently qualify because they have no earnings, the planned April 2028 expansion could change that.
The main figures are relatively straightforward. Savers can put away up to £50 a month, potentially accumulating £2,400 over four years. The maximum government bonus can reach £1,200.
The important detail is how that bonus is calculated. It is based on the highest balances reached during defined periods rather than being a simple 50% payment on every deposit. Withdrawals can therefore affect the amount ultimately received.
With hundreds of thousands of people already using Help to Save, the planned expansion could bring the scheme to a considerably larger group of Universal Credit claimants. Anyone considering the account should check the eligibility rules and understand how the bonus works before deciding how much to save.
