Free Money If You're on Universal Credit (Help To Save Account)

 
 

Table of Contents

    If you're on Universal Credit and have low earnings, you could be missing out on up to £1,200 in free money from the government — all through the Help to Save scheme.

    What's Help to Save?

    It's a government-backed savings account that rewards you for putting money aside. If you qualify, you can:

    ✅ Save up to £50 per month
    ✅ Get a 50% bonus on what you save — that’s 50p for every £1
    ✅ Earn up to £1,200 over 4 years

    You can dip into your savings whenever you need — your bonus is based on what you’ve saved, not what’s left in the account. Win-win.

    Who’s Eligible?

    • You must be on Universal Credit and earning at least £1 from work (or be receiving Working Tax Credit)

    • That £1 of earnings must be during the assessment period you apply in

    • You’ll need to be a UK resident and over 16

    Check the official criteria and apply here

    How the Bonuses Work with Help to Save

    You can earn 2 tax-free bonuses over 4 years — and yes, even if you withdraw money during that time, you’ll still receive any bonuses you’ve already earned.

    Bonus 1: After 2 Years

    At the end of your first 2 years, you’ll receive a 50% bonus based on the highest balance you’ve reached in that time.

    Example:
    If you save £25 a month for 2 years (£600 total), your first bonus will be £300.

    Tip: You can still withdraw money during this period — your bonus is calculated on the highest balance, not your final balance.

    Bonus 2: After 4 Years

    To earn the final bonus, you need to grow your savings even more in years 3 and 4. The second bonus is also 50%, but this time it’s based on the increase in your balance between the two periods.

    Calculation:

    50% of the difference between:

    • Your highest balance in years 1–2

    • Your highest balance in years 3–4

    Example:
    Your highest balance in years 1–2 is £600.
    By year 4, you’ve increased it to £800.
    Your final bonus will be £100 (which is 50% of the £200 increase).

    Important: If your balance doesn’t go up between the first and second 2-year periods, you won’t earn the final bonus.

    Where the Bonus Is Paid

    • Bonuses are paid into your bank account, not into your Help to Save account.

    • This means the money is yours to spend or save as you like, no restrictions.

    What If You Withdraw Money?

    You can still qualify for bonuses even if you take money out, but it makes it harder to grow your balance and get the maximum bonus.

    Withdrawals can affect:

    • Your ability to reach a new “highest balance”

    • The size of your second (final) bonus

    Important:

    • Your Help to Save balance is classed as savings, so if you already have savings close to the UC threshold, make sure it won’t tip you over.

    • Couples can both open separate accounts, doubling your total bonus to £2,400 over 4 years!

    Previous
    Previous

    Get Paid to Donate Blood: How It Works and Where to Start

    Next
    Next

    How to Earn £25 with Dibz – No Spend Required!