In a time when every pound counts, the HMRC Help to Save scheme continues to offer one of the most beneficial savings incentives for individuals on low incomes across the UK.
With the potential to earn up to £1,200 in government bonus payments over four years, this initiative is designed to support financial resilience and help build a solid savings habit.
As we move into 2026, it’s essential to understand how the scheme works, who qualifies, and what you need to do to claim your Help to Save bonus payments successfully.
Let’s explore everything you need to know about accessing this valuable government-backed savings scheme in the coming year.
What Is the HMRC Help to Save Scheme and Who Is Eligible in 2026?
The Help to Save scheme is a UK government initiative tailored for people on low incomes who are either receiving Working Tax Credit or Universal Credit.
The main objective is to encourage regular saving by offering a generous 50% bonus on the money saved, up to £50 per month, over a period of four years.
Updated Eligibility Criteria for 2026
To be eligible for Help to Save in 2026, individuals must meet one of the following criteria:
Be a UK resident and:
- Receiving Working Tax Credit, or
- Entitled to Working Tax Credit and receiving Child Tax Credit, or
- Claiming Universal Credit and earning at least £654.54 in their last monthly assessment period (this is from paid work, excluding the Universal Credit payment itself)
As of April 2025, the scheme was extended to include all working Universal Credit claimants, significantly expanding the pool of eligible savers.
Special Circumstances
People living overseas can also apply if they are:
- Crown servants or their spouses/civil partners
- Members of the British armed forces or their spouses/civil partners
The account remains valid even if the individual later stops claiming benefits, as long as it was opened while eligible.
How Does the Help to Save Bonus Payment System Work?
The Help to Save scheme offers two tax-free bonuses across a four-year saving term. These bonuses are calculated based on the highest balance achieved in specific periods.
Understanding the Two-Stage Bonus Structure:
| Bonus Stage | Timeframe | Calculation Method | Maximum Bonus |
| First Bonus | End of Year 2 | 50% of the highest balance saved during years 1–2 | £600 |
| Second Bonus | End of Year 4 | 50% of the increase in balance from years 1–2 to 3–4 | £600 |
The first bonus is relatively straightforward, HMRC reviews your highest saved balance over the first two years and pays 50% of it.
The second bonus requires that your balance in the final two years surpasses your earlier balance. If your balance doesn’t increase, you won’t receive the second bonus.
These bonuses are paid directly into your personal bank account, not into your Help to Save account, and are tax-free.
How Can You Open a Help to Save Account in 2026?
Opening a Help to Save account is quick and straightforward for those who qualify. As of 2026, there are two primary ways to apply: online or via the HMRC app.
What You’ll Need?
To open an account, you must provide:
- National Insurance number
- UK bank account details (for withdrawals and bonus payments)
- A Government Gateway account (you can create one during the application process)
You can deposit funds using a debit card, standing order, or bank transfer. Accounts can be opened until April 2027, thanks to the recent extension of the scheme.
When and How Are the Bonus Payments Made by HMRC?
The HMRC bonus payments are issued at the end of the second and fourth years of the account, depending on your savings performance. These are automatic payments and do not require any special request from the saver.
The timing works as follows:
- First Bonus: Paid after the second anniversary of opening your account. It’s calculated as 50% of the highest balance you achieved during those first two years.
- Second Bonus: Paid after four years. HMRC assesses how much your balance increased compared to the earlier period and pays 50% of that increase.
Bonuses are deposited into the linked bank account, not the Help to Save account. Even if money has been withdrawn during the saving period, bonuses are still available, although the amounts may be lower.
What Are the Savings Rules and Limits for 2026?
Savers can contribute any amount between £1 and £50 per calendar month. The flexibility of the scheme allows people to pause and resume their savings as needed, without penalty.
Unlike traditional savings accounts, there’s no requirement to deposit money every month. However, regular contributions improve the chances of earning the maximum possible bonuses.
Key Saving Rules
- You may deposit up to £50 a month, totalling a maximum of £2,400 over four years
- You can withdraw money at any time, although doing so might reduce your future bonus potential
- The account automatically closes after four years; it cannot be reopened
- Each individual can open only one Help to Save account in their lifetime
How Do Withdrawals Affect Your Help to Save Bonus?
Withdrawals are permitted at any time, offering savers significant flexibility. However, understanding the impact on bonus eligibility is crucial.
Withdrawals won’t prevent you from receiving the first bonus, as it is based on the highest balance reached during the first two years.
But if you withdraw and reduce your balance before the second period begins, it may be difficult to increase your balance enough to qualify for the second bonus.
For example, if you save £1,200 in the first two years and then withdraw most of it, your highest balance may not increase in the following years, disqualifying you from the second bonus.
Does Saving with Help to Save Affect Your Benefits?
A common concern among potential savers is whether their participation in Help to Save will negatively impact their benefit entitlements. Fortunately, the scheme has been structured to work in harmony with major UK benefit systems.
Effect on Major UK Benefits:
| Benefit Type | Impact of Help to Save |
| Universal Credit | Savings up to £6,000, including Help to Save balances, do not affect your claim |
| Working Tax Credit | Not affected by Help to Save account balances or bonuses |
| Housing Benefit | No effect unless savings exceed the £6,000 threshold |
Bonuses paid by HMRC are not considered income for benefits purposes, which makes the scheme particularly attractive for those managing limited household budgets.
What Are the Latest HMRC Statistics and Scheme Updates for 2026?
The Help to Save scheme has seen significant uptake since its launch in 2018, and the government has reaffirmed its commitment to supporting low-income savers by extending the programme.
Highlights as of April 2025:
- 575,200 accounts opened across the UK
- Over £588 million paid into savings accounts
- More than £220 million paid in bonus payments to savers
- Scheme extended to April 2027
- Eligibility widened to include all working Universal Credit claimants
These figures demonstrate the scheme’s effectiveness in promoting regular saving habits. Furthermore, with 94% of users contributing the maximum each month, the response suggests a strong level of engagement from those who need it most.
How Can You Maximise Your HMRC Help to Save Bonus in 2026?
To make the most of the Help to Save scheme, it’s essential to adopt a consistent saving strategy and understand the mechanics of bonus payments. Here are a few strategies to maximise the benefit:
Tips to Maximise Your Bonus
- Save £50 every month: This maximises your contributions and helps you reach the £2,400 deposit cap
- Avoid withdrawals: Keeping your balance intact helps secure both bonuses
- Track your progress via the HMRC app, which shows deposits and bonus status
- Set up standing orders to automate your monthly savings
- Monitor changes to eligibility criteria to ensure you maintain your account status
By consistently saving and avoiding large withdrawals, many savers can achieve the full £1,200 bonus by the end of four years.
Conclusion
The HMRC Help to Save scheme continues to be one of the most generous savings opportunities for low-income earners in the UK. With a 50% government bonus, tax-free payments, and minimal risk, it provides a practical way to build a financial cushion over time.
By understanding how the bonus system works, ensuring consistent monthly contributions, and avoiding withdrawals when possible, eligible individuals can significantly boost their savings with government support.
For those eligible, especially with the scheme extended until April 2027, there’s no better time than 2026 to start saving and claim your Help to Save bonus payments.
Frequently Asked Questions
Can you receive a Help to Save bonus if you stop claiming Universal Credit?
Yes, once your account is open, you can continue saving and earn bonuses even if your eligibility changes. You just need to open the account while eligible.
Is the Help to Save bonus taxable in the UK?
No, both the first and second bonuses are completely tax-free and won’t count as income for benefits or taxation.
Can both partners in a household have a Help to Save account?
Yes, if both partners individually meet the eligibility criteria, they can each open their own Help to Save account.
What happens if you close your Help to Save account early?
You can close it at any time, but you will lose eligibility for future bonuses, and you cannot open a new account again in the future.
How do you check your Help to Save bonus progress?
You can track your contributions and bonus status via the HMRC app or your Government Gateway account on GOV.UK.
What if your income drops below the eligibility threshold after opening an account?
Your account remains valid. The income test is only required at the time of opening, not for the full duration of the scheme.
Can you re-open a Help to Save account if you previously closed it?
No, each person is only allowed to open one Help to Save account in their lifetime. Once it’s closed, it cannot be reopened.
