A VIRTUALLY unknown tool can give thousands of people who claim Universal Credit a free bonus of £1,200.
The HM Revenue & Customs shared details of the scheme on social media to encourage those eligible to apply.
Help to Save is a government-backed scheme for people on benefits including Universal Credit or Working Tax Credit.
The savings account allows people to get a bonus of 50p for every £1 they save over four years.
Since Help to Save is backed by the Government, all the savings in the scheme are secure.
HMRC shared some details on X, formerly called Twitter, saying: “For every £2 you save in a Help to Save account, you’ll get an extra £1 from the government.
“Over time, this can add up.”
The scheme was first launched in 2018 and last year it was extended to April 2025.
Figures released by the government in October 2023 revealed that almost 450,000 customers opened a Help to Save account between September 2018 and March 2023.
During that time, nearly £372.5million was paid into accounts.
Martin Lewis, the founder of Money Saving Expert, previously praised the scheme, describing it as “unbeatable” and saying: “If you know anyone on Universal Credit especially please do share this with them.
“It’s an unbeatable form of savings, that can add serious cash with no risk.”
But despite the free cash on offer through the scheme, some people seem to be unaware of it.
One user on the Money Saving Expert forum said: “So I must live under a rock and hadn’t heard of this before! I’ve opened an account now.”
How does the scheme work?
Savers can deposit between £1 and £50 a month into their account and will receive a government bonus – even if money has been withdrawn.
A 50p bonus is paid for every £1 saved, meaning that someone saving the maximum amount of £50 monthly can receive an extra £25 for free, which adds up to £300 in a year.
It means that someone saving £2,400 – the maximum amount they could deposit over four years – would receive a £1,200 bonus from the government.
The bonus is paid directly into their bank account.
Keep in mind that don’t have to pay in each month if you don’t want to or can’t afford to.
You can put even just a couple of pounds in – it doesn’t have to be the maximum amount.
Account holders can also withdraw month whenever they like, but this means they might not be able to receive the full bonus before their account is closed.
You can save money in the account through a debit card, standing order or bank transfer.
The account will automatically close four years after you open it and you can’t apply for another one.
Anyone who closes the account before the four years are up, will miss the next bonus and won’t be able to reopen the account.
Who is eligible for a Help to Save account?
You can open a Help to Save account if :
- You are receiving Working Tax Credit
- You are entitled to Working Tax Credit and receiving Child Tax Credit
- You are claiming Universal Credit and you – with your partner if it’s a joint claim – earned £722.45 or more from paid work in your last monthly assessment period
If you get payments as a couple, you and your partner can apply for your own Help to Save accounts and will need to apply individually.
In most cases you will need to be living in the UK, except for a crown servant or their spouse or civil partner or member of the British armed forces or their spouse or civil partner.
You can keep your Help to Save account even if you stop claiming benefits during the four years it is open.
If you or your partner have £6,000 or less in personal savings, including in your Help to Save account, this will not affect how much Universal Credit you get.
Free cash schemes if you're struggling
Many of us are still struggling with the high cost of living - but there's help you can get.
New or expectant parents can get up to £442 a year to spend on food through Healthy Start scheme.
Some new parents can get £500 via the Sure Start Maternity Grant. The money is designed to help you cover the costs of having a child.
Councils also offer support through the welfare assistance schemes, to help cover the costs of essentials, from buying new furniture to food vouchers.
The amount you can get varies but an investigation by The Sun found that hard-up Brits can apply for help worth up to £1,000.
Discretionary Housing Payment is a pot of money handed out by councils to those struggling to keep a roof over their heads.
A scheme is available for those who find themselves unable to cover housing costs, though the exact amount varies as each local authority dishes out the cash on a case-by-case basis.
Many energy forms offer grants to help cash-tight customers. The exact amount varies depending on your supplier and you circumstances, but could be as much a £2,000.
How to apply for the scheme
You can apply online for an account through the government website.
You need a Government Gateway user ID and password to open an account, which you can create one as part of your application if you don’t already have one.
When applying, you will be asked for your UK bank details so make sure you have them to hand.
Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “Help to Save can encourage positive saving habits – no matter what you can afford to save – and the 50% government bonus payment can help savers when they need it most.
“It is quick and easy to apply online or via the HMRC app, just search ‘help to save’ on GOV.UK to find out more.”
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