Budget 2024: Major update on 'unbeatable' savings account that pays £1,200 bonus

Help to Save is a savings account that is issued by the Government for some people claiming Universal Credit or Tax Credits and it allows you to put away between £1 and £50 each month

A major change to the Help to Save scheme which offers a bonus of up to £1,200 has been confirmed in documents released after the Budget.

Help to Save is a savings account that is issued by the Government for some people claiming Universal Credit or Tax Credits. It allows you to put away between £1 and £50 each month - and for every £1 you save, you get 50p back, which is a 50% return on your money. Martin Lewis previously described this as "unbeatable".

The account lasts four years with bonuses paid after the second and fourth years of the account being opened. If you're able to save the maximum of £50 each month, you will have saved £2,400 by the end of the four years and accrued £1,200 in bonuses from the Government.

You don't have to save every month and you can save less and still get a bonus. For example, if you save £25 a month over two years, your bonus would be £600 back. Help to Save was due to end in April 2025, but in Budget documents, it was confirmed it has been extended by a further two years until April 5, 2027.

The eligibility criteria for Universal Credit claimants is also being expanded. Under current rules, you can only open a Help to Save account if you, or you with your partner, if you have a joint claim, had a take-home pay of £722.45 or more in your last monthly assessment period. But from April 6, 2025, anyone who claims Universal Credit and earns at least £1 from work will be able to open a Help to Save account.

How to open a Help to Save account

You can open your Help to Save account through GOV.UK or by calling 0300 322 7093. If you're in a couple, you and your partner can both open separate Help to Save accounts, even if you receive benefit payments as a couple.

If you have savings elsewhere, having a Help to Save account could potentially see your benefits reduced if you go over a certain threshold. If you claim Universal Credit or Housing Benefit, you and your partner can have up to £6,000 in personal savings - above this amount, and your benefits could be reduced.

This would include any savings in your Help to Save account. Any savings or bonuses you earn through Help to Save will not affect your Working Tax Credit.