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Millions of households could get a £1200 boost with The Help to Save scheme, a government savings plan which encourages those on benefits to put aside a nest egg. Following the managed migration to Universal Credit from several legacy benefits (such as tax credits and some disability benefits) many more claimants are now eligible. The scheme has been extended, allowing people to open an account until April 2027.
Under the Help to Save scheme, for every £1 you put in to your Help to Save account, the government will boost it by 50p up to a set payment amount. How it works You can save between £1 and £50 each calendar month. You do not have to pay money in every month.
You can pay money into your Help to Save account by debit card, standing order or bank transfer. You can pay in as many times as you like, but the most you can pay in each calendar month is £50. For example, if you have saved £50 by 8 January you will not be able to pay in again until 1 February.
You can only withdraw money from your Help to Save account to another bank account. Help to Save is backed by the government so all savings in the scheme are secure. How DWP Help to Save bonuses work You get bonuses - two over four years.
You’ll get any bonuses you’ve earned even if you withdraw money. After your first two years, you’ll get a first bonus if you’ve been using your account to save. This bonus will be 50% of the highest balance you’ve saved.
After four years, you’ll get a final bonus if you continue to save. This bonus will be 50% of the difference between 2 amounts: the highest balance saved in the first 2 years (years 1 and 2) the highest balance saved in the last 2 years (years 3 and 4) If your highest balance does not increase, you will not earn a final bonus. The most you can pay into your account each calendar month is £50, which is £2,400 over 4 years.
The most you can earn from your savings in four years is £1,200 in bonus money. How it will affect your benefits Saving money though a Help to Save account could affect your eligibility for certain benefits and how much you get. Universal Credit If you or your partner have £6,000 or less in personal savings this will not affect how much Universal Credit you get.
This includes any savings in your Help to Save account. Your Help to Save bonuses will not affect your Universal Credit payments. Housing Benefit If you or your partner have £6,000 or less in personal savings this will not affect how much Housing Benefit you get.
This includes any savings in your Help to Save account. Your Help to Save bonuses will not affect your Housing Benefit payments. Recommended reading: Martin Lewis: Biggest factor to change mortgage rates Martin Lewis urgent warning for DWP tax credit claimants DWP State Pension age will have to rise to 71 says report How to apply You’ll need to sign in to set up a Help to Save account .
If you do not already have sign in details, you’ll be able to create them when you sign in for the first time. You’ll need your National Insurance number or postcode and two of the following: a valid UK passport a UK photocard driving licence issued by the DVLA (or DVA in Northern Ireland) details of a tax credit claim, if you made one details from a Self Assessment tax return in the last 2 years, if you made one information held on your credit record, if you have one (such as loans, credit cards or mortgages) You’ll be asked to provide your UK bank details when you apply..
