How to get a £1,200 bonus with Savings Help – new changes you need to know!

If you’re looking for an extra way to build some savings, a government Help Savings account may be just the thing.

Thanks to the October budget, this unique savings scheme will last longer and be more accessible, meaning even more people will be able to take advantage.

Here’s an explanation of how Savings Help works, who’s eligible, and why it could be a good option for those on Universal Credit or Tax Credit.

How does ‘Saving Help’ work?

Help to Save is a savings program designed to help people with certain benefits put money aside, with the government matching part of what they save. For every £1 you save, the government adds 50p.

That’s a 50% return on your savings, which is unheard of in most savings accounts these days!

To get started, you’ll need to open a Help To Save account and deposit anywhere between £1 and £50 per month.

The account can be held for four years, and bonuses are paid twice: after two years and again at the end of four years.

Let’s say you put away £50 a month.

At the end of four years, you will have saved £2,400 of your money, and the government will have added a total bonus of £1,200. That’s a real boost to your savings with little effort!

If you can’t save a lot, no problem. Any amount you save will still qualify for the 50% bonus, even if you skip a month or save less in other months.

For example, saving just £25 a month over two years could give you a £600 bonus!

More time to take advantage

Originally, the Savings Assistance program was supposed to end in April 2025. But with the latest Budget update, it has now been extended until April 2027.

This gives people an extra two years to jump in and start building their money with more help from the government.

Extended eligibility for Universal Credit claimants

The government has also relaxed eligibility rules for Universal Credit claimants. Currently, you need to have earned at least £722.45 in your last monthly period to qualify.

However, from April 2025, any Universal Credit claimant who has earned at least £1 from work can open a Help to Save account.

This change makes it easier for more people to benefit from the program, including those who work fewer hours or earn less per month.

How to open a ‘Help to Save’ account

Getting started with Backup is easy. Simply visit the Last Help website or call 0300 322 7093 to set up your account.

If you are a couple and receive benefits as a family, each partner can open a Help Savings account, even if you claim benefits jointly.

This can double the benefits if you both participate, giving each partner the opportunity to save and receive a bonus individually.

Be aware of profit limits

While Savings Help offers important savings benefits, it’s important to consider your overall savings if you receive other benefits.

If you have Universal Credit or Housing Benefit, your combined savings (including your Savings Allowance) must not exceed £6,000. If you exceed this limit, your benefits may be reduced.

However, for those on Working Tax Credit, there is no impact from your Savings Allowance or bonuses, so you can save with more peace of mind.

Why should you consider ‘Help to Save’?

With the rising cost of living, finding ways to save money can be a challenge, especially on a tight budget.

Savings Help makes it easy by offering a solid 50% bonus on anything you can put aside, no matter how small.

And with recent changes, the program is now available to many people, for a long time.

If you qualify, a Savings Account can be a great way to build an emergency fund, save for future goals, or give yourself more financial security.

It’s all about making small, regular savings that add up over time—and when the government steps in, you can be sure your efforts won’t go unnoticed.

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