DWP Launches New Savings Plan: If you’re currently receiving Universal Credit, you may now be eligible for one of the UK’s most generous government-backed savings initiatives: the Help to Save scheme. Thanks to a new effort from the Department for Work and Pensions (DWP), you can earn up to £1,200 in tax-free bonuses over four years. Designed for those on low incomes, this savings plan rewards consistent savers with a 50% return—making it one of the smartest financial tools available today.
In this article, we’ll break down exactly how the scheme works, how you can apply, and why this could be the perfect time to kickstart your savings journey—even if you’re only putting away a few pounds each month. Whether you’re planning for an emergency, a family expense, or just trying to build better financial habits, Help to Save is tailored to support your goals.
DWP Launches New Savings Plan
| Feature | Details |
|---|---|
| Eligibility | Must be on Universal Credit with at least £1 income in last assessment period |
| Savings Limit | Save between £1 – £50 each month |
| Bonus Amount | Up to £1,200 tax-free over four years |
| Bonus Rate | 50% of the highest balance during 2-year periods |
| Access to Funds | Withdraw at any time, but it may affect bonus eligibility |
| Where to Apply | GOV.UK Help to Save |
| Program Managed By | National Savings and Investments (NS&I) |
| Scheme Extension | Now open until April 2027 |
The Help to Save scheme is more than a clever savings plan—it’s a government initiative that supports people in building long-term financial health. With a risk-free, government-backed bonus of up to £1,200, this is an opportunity no eligible person should miss.
By saving just a small amount each month, you can access a powerful bonus, create healthy financial habits, and gain peace of mind. If you’re receiving Universal Credit, Working Tax Credit, or Child Tax Credit, now is the time to act.
What Is the Help to Save Scheme?
Help to Save is a UK government-backed savings account designed for individuals on low incomes, specifically those receiving Universal Credit or Working Tax Credit. Launched in 2018, the scheme has proven so effective at encouraging financial resilience that it has been extended to run until April 2027.
The concept is refreshingly simple: for every £1 you save, the government adds 50p. That means if you save the maximum of £2,400 over four years, you’ll receive a £1,200 bonus—completely tax-free.
Who Can Apply?
You qualify to join the Help to Save scheme if you meet one of the following criteria:
- You’re receiving Universal Credit, and your household income in the most recent monthly assessment period was at least £1;
- Or, you’re entitled to Working Tax Credit or Child Tax Credit.
Even if you only meet the criteria for a short period, once you open the account, it stays active for four years—regardless of changes in your benefits status. This flexibility allows more people to access long-term support. You can check eligibility or apply here: GOV.UK Help to Save
How Does the Scheme Work?
Let’s walk through how you can take advantage of Help to Save in just a few simple steps.
DWP Launches New Savings Plan Guide:
1. Open Your Account
- Visit the Help to Save page on GOV.UK
- Log in using your Government Gateway credentials (or create an account)
- Provide a few personal details, including your National Insurance number and bank account information
- It only takes a few minutes to sign up
2. Make Monthly Contributions
- Deposit between £1 and £50 per calendar month
- Save as little or as much as you can—there’s no penalty for skipping a month
- Use a bank transfer or set up a standing order to automate your savings
3. Receive Your Bonuses
- After 2 years, you’ll get a bonus worth 50% of your highest balance during that period
- Continue saving into years 3 and 4, and you’ll receive another bonus—50% of the difference between your highest balances in the first and second periods
4. Get Paid Directly
- Bonuses are deposited directly into your linked bank account
- Your savings remain untouched, and you’re free to use them as needed
Extended Example:
Let’s say you save the full £50 every month:
- After 2 years: £1,200 saved, £600 bonus
- After 4 years: £2,400 saved, £1,200 total bonus
- Final balance: £3,600 (£2,400 + £1,200)
Even if you only save £10 a month, that’s £480 saved over four years and a £240 bonus—still a meaningful boost for many families.
Why This Scheme Matters More Than Ever
According to a 2023 report by the Office for National Statistics (ONS), over 11 million adults in the UK have less than £100 in savings. That’s a staggering figure that highlights how vulnerable many households are to unexpected expenses.
The Help to Save scheme is a lifeline, especially in today’s climate of rising energy bills, food prices, and rent costs. It encourages people to develop strong saving habits by offering meaningful incentives and real financial rewards.
Beyond the statistics, the scheme offers peace of mind. It’s about more than the money—it’s about knowing you’re taking active steps toward a more secure financial future.
Expert Tips to Maximise Your Help to Save Account
To make the most of your Help to Save journey, consider these professional insights:
- Automate savings: Set up a standing order so you never forget to contribute
- Track your balance: Use a budgeting app like Moneyhub, Emma, or Snoop to stay motivated
- Avoid frequent withdrawals: Remember, bonuses are based on your highest balance—not your average balance
- Set milestones: Create savings goals (e.g. “Save £300 by Christmas”) to stay engaged
- Include family: Encourage partners or household members who qualify to join as well. Each person can open their own account
Can You Access Funds Before the Term Ends?
Yes! One of the scheme’s key benefits is flexibility. You can withdraw your money at any time. However:
- Withdrawing funds may reduce your final bonus, as the bonus is calculated based on your highest saved amount
- There are no penalties, fees, or fines for accessing your funds early
This makes the account ideal for people who want to save but may need emergency access.
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Is My Money Safe?
Absolutely. Your Help to Save account is operated by National Savings and Investments (NS&I), a government-backed institution.
Unlike some high-street banks, NS&I is 100% guaranteed by HM Treasury, meaning your money is fully protected no matter what happens in the wider economy.
FAQs On DWP Launches New Savings Plan
Can I open more than one Help to Save account?
No, you are only allowed one account per person.
Can I stop saving or close my account early?
Yes. You can stop contributing at any time, and even close your account. However, once closed, you cannot reopen it, and you forfeit any future bonuses.
Do savings affect my Universal Credit or other benefits?
No. Both your savings and the bonus you receive do not count as income and won’t affect your eligibility for Universal Credit or Tax Credits.
What happens if I lose eligibility after opening an account?
Your account remains active for the full four years, and you can continue to save and earn bonuses—even if you no longer qualify for Universal Credit or Tax Credits.
When is the deadline to apply?
The scheme has been extended until April 2027. That gives you plenty of time to apply, but the sooner you start, the more you can benefit.
