Guidance for individuals in the United Kingdom who are eligible for the Help to Save scheme. It is intended for low-income earners, particularly those receiving Universal Credit or Working Tax Credit, who wish to build savings with the support of government incentives. The information below outlines the current structure of the scheme, eligibility criteria, benefits, and the application process.
As of May 2025, significant updates have been implemented to the Help to Save scheme, enhancing its accessibility and benefits for UK residents.
Extension of the Scheme
The Help to Save programme, originally set to conclude in April 2025, has been extended until April 2027. This extension allows eligible individuals to continue benefiting from the scheme’s incentives for an additional two years.
Expanded Eligibility Criteria
Effective from 6 April 2025, the eligibility criteria for the Help to Save scheme have been broadened. Previously, Universal Credit claimants needed to have earned at least £846.56 in their last assessment period to qualify. Now, any Universal Credit recipient who has earned £1 or more in their previous assessment period is eligible to participate.
This change is anticipated to make approximately 550,000 additional individuals eligible for the scheme.
Future Enhancements
Looking ahead, from April 2027, the scheme is set to undergo further reforms to simplify its structure and improve user experience.
Planned changes include:
- Bonus Payment Frequency: Bonuses will be paid every six months, replacing the current biennial system.
- Bonus Calculation Method: Bonuses will be calculated based on net contributions during each six-month period, providing a clearer understanding of savings growth.
- Bonus Payment Method: Bonuses will be directly deposited into the Help to Save account, making them more visible and encouraging continued saving.
These updates aim to make the Help to Save scheme more inclusive and user-friendly, supporting low-income individuals in building financial resilience through regular savings.
Overview of the Help to Save Scheme
The Help to Save scheme is a government-backed savings programme designed to encourage saving among low-income individuals. Participants can save between £1 and £50 each month over a four-year period. The government provides a tax-free bonus of 50% on the amount saved, equating to a maximum bonus of £1,200 over four years.
Bonuses are paid at the end of the second and fourth years, based on the highest balance achieved. Withdrawals are permitted; however, they may affect the bonus amount. The scheme is secure, as it is backed by the government, ensuring that all savings are protected.
Eligibility Criteria
As of April 6, 2025, the eligibility criteria for the Help to Save scheme have been expanded to include:
Individuals receiving Working Tax Credit.
- Individuals receiving Universal Credit who have earned at least £1 from paid work in their last monthly assessment period.
Previously, the earnings threshold was higher; the recent adjustment aims to make the scheme accessible to a broader range of working individuals on low incomes.
Application Process
Eligible individuals can apply for the Help to Save scheme through the official government website or via the HM Revenue & Customs (HMRC) app. The application process requires the following:
- A Government Gateway user ID and password (these can be created during the application process if not already held).
- UK bank account details.
- National Insurance number or postcode.
- Two forms of identification.
Once the application is approved, participants can begin making deposits into their Help to Save account.
Schemes Duration and Account Management
The Help to Save account remains open for four years from the date of opening. Participants are not required to deposit money every month; however, the bonus is calculated based on the highest balance achieved. Withdrawals are allowed, but they may reduce the bonus amount.
After four years, the account will close, and the final bonus will be paid. Participants cannot open another Help to Save account after the initial one expires.
Additional Support and Resources
Individuals seeking further information or assistance can contact the Help to Save helpline at 0300 322 7093. Additional resources and support may be available through local councils or financial advisory services.
Actionable Steps:
- Determine your eligibility based on the criteria outlined above.
- Gather the necessary documentation: Government Gateway credentials, UK bank account details, National Insurance number or postcode, and two forms of identification.
- Apply for the Help to Save scheme through the official government website or HMRC app.
- Begin making deposits into your Help to Save account, keeping in mind the maximum monthly contribution of £50.
- Monitor your account balance and plan withdrawals carefully to maximise your bonus.
- At the end of the four-year period, ensure that your account is closed and the final bonus is received.
Support Available:
For the most current and authoritative information on government assistance in 2025, consult the following official sources:
- Main Cost of Living Hub
- Cold Weather Payment Information
- Warm Home Discount Scheme (Ofgem)
- Household Support Fund by Council
- Contact DWP for Payment Queries
ECO4 Support Available:
- Department for Business, Energy & Industrial Strategy – Energy Company Obligation
- Ofgem – Energy Company Obligation (ECO4) Guidance: Delivery V1.1
- Ofgem – Energy Company Obligation (ECO)
- UK Government – Help from your energy supplier: the Energy Company Obligation
- Which? – Energy Company Obligation (ECO)
Other Support Available:
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