Starting April 2025, thousands of low-income workers across the UK stand to benefit from a crucial update to the government’s savings support initiative. The Department for Work and Pensions (DWP) has expanded access to the “Help to Save” scheme, making it available to all Universal Credit recipients who are in employment—regardless of their earnings level. This move is aimed at boosting financial resilience among working claimants by allowing them to grow their savings with the aid of generous government bonuses.
Previously, eligibility for this programme was restricted to Universal Credit recipients with higher earnings and Working Tax Credit claimants. However, from April 6, 2025, the doors open wider, enabling more low-income earners to participate in the savings plan. This initiative has been widely welcomed as a positive step toward encouraging personal financial growth and improving long-term economic stability. It’s a practical support system that not only promotes savings but also rewards consistent effort.
With up to £1,200 in government-provided bonuses over a four-year term, the updated Help to Save account offers unmatched flexibility. Contributors can save as little as £1 to a maximum of £50 per month, withdraw funds as needed, and still qualify for two significant bonus payouts. As the scheme is only available until April 2027, eligible participants are encouraged to take full advantage of it before it closes.
How the Help to Save Scheme Works
The Help to Save programme offers a government bonus of 50p for every £1 saved, with the potential to earn up to £1,200 in total over four years. Account holders can contribute between £1 and £50 per month, and there is no penalty for skipping months. Contributions can be made through debit card payments, standing orders, or direct bank transfers. Despite the flexible saving terms, the £50 monthly limit remains fixed.
The bonus is paid out in two instalments. The first bonus is awarded after two years and equals 50% of the highest balance saved during that period. For instance, if a participant saves £600, they receive a £300 bonus. The second bonus, given after four years, is 50% of the difference between the highest balances in the final two years compared to the first two. If a balance rises from £600 to £800, a second bonus of £100 is earned, totaling £400 in bonuses.
Full Flexibility on Withdrawals
One of the most appealing features of the scheme is its complete withdrawal flexibility. Users can take out money at any time without affecting the bonuses already earned. All withdrawals are made directly to the linked bank account. This allows savers to handle emergency expenses or planned spending without losing progress toward the government rewards.
Eligibility Criteria Expanded
To qualify, participants must be receiving Universal Credit and be in employment or be recipients of Working Tax Credit. As of April 6, 2025, income thresholds will be removed, meaning any working Universal Credit claimant can now apply. This expanded eligibility aims to support more low-income households and promote better financial habits.
Scheme Duration and Closure
Accounts last for a maximum of four years and cannot be renewed or reopened once the term ends. The scheme will be available until April 2027, following an extension announced in August 2024. Participants are encouraged to enrol early and make the most of the bonus potential before it closes permanently.
Example Scenario
Imagine someone saves £25 per month for the first two years. That’s a total of £600. They would receive a £300 bonus. If they save an additional £200 in the next two years, reaching a balance of £800, they would receive another £100 as a second bonus—bringing the total bonus to £400 and total balance to £1,200. Even if withdrawals are made, the bonus is calculated based on the highest balance, not the current one.
Easter Payment Adjustments for DWP Claimants
Due to the Easter holidays in April 2025, Universal Credit and other DWP payments may be issued earlier than usual. Since Good Friday falls on April 18 and Easter Monday on April 21, most payments will be processed by Thursday, April 17, and deposited into recipients’ bank accounts, credit union accounts, or building society accounts without disruption.