Thousands of people receiving Universal Credit could be missing out on a valuable government‑backed savings boost worth up to 50% extra on what they put aside. Consumer finance expert Martin Lewis has repeatedly encouraged eligible households to check whether they qualify for the scheme — describing it as one of the most generous savings incentives currently available to low‑income earners.
At a time when living costs remain stretched and many families are struggling to build even small emergency funds, the idea of receiving a 50% bonus on savings sounds almost too good to be true. But the scheme is real — and it is specifically designed to support people on lower incomes, including many who receive Universal Credit.
So what exactly is this 50% bonus scheme? Who qualifies? And how can you claim it?
Here is a full, clear and practical guide.
What Is the 50% Bonus Scheme
The scheme being highlighted is known as the Help to Save account, operated through HM Revenue and Customs.
It allows eligible people to save between £1 and £50 per month and receive a government bonus worth 50% of their savings.
In simple terms:
Save £50
Receive a £25 bonus
Over time, the bonuses can add up significantly.
The scheme runs for four years and pays bonuses at two points during the term.
How the Bonus Works
The bonus is calculated based on the highest balance you reach during specific periods.
After the first two years, you receive a 50% bonus on your highest balance achieved.
After four years, you receive another 50% bonus on any increase in your highest balance compared to year two.
If you save the maximum £50 every month for four years, you could receive up to £1,200 in bonuses.
That is a substantial return compared to traditional savings accounts.
Why Martin Lewis Is Highlighting It
Martin Lewis has frequently pointed out that many eligible people are unaware the scheme exists.
Because it is not automatically opened when you claim benefits, many Universal Credit recipients simply never hear about it.
He has described it as one of the most generous risk‑free savings opportunities available to low‑income households.
Unlike investments, there is no risk to your original savings. You can withdraw your money at any time, although withdrawing may affect the bonus calculation.
Who Qualifies
You may qualify if you:
Receive Universal Credit
Had earnings of at least a specified minimum amount in your last monthly assessment period
Or receive Working Tax Credit
Eligibility depends on current benefit status and income levels.
The key group targeted by the scheme is working households on Universal Credit — particularly those with modest earnings.
If you are unsure, you can check eligibility through your government account.
Is It Means‑Tested
The scheme is linked to your benefit status rather than your total savings.
However, large savings balances can affect Universal Credit entitlement.
Before building significant savings, it is sensible to understand how capital limits work.
For Universal Credit, savings above certain thresholds may reduce payments.
Still, for many claimants, building a modest emergency fund through Help to Save remains beneficial.
Why a 50% Bonus Is So Powerful
In today’s savings market, even competitive accounts offer around 4–5% interest annually.
A 50% government bonus is far beyond typical market returns.
For example:
Save £600 over one year
Receive £300 bonus
No high street savings account can match that rate.
This makes the scheme particularly attractive for building small emergency funds.
Flexibility and Withdrawals
One major advantage is flexibility.
You can withdraw your money at any time if needed.
There are no penalties for withdrawals.
However, withdrawing may reduce your maximum balance and therefore reduce the bonus amount.
If possible, leaving savings untouched until bonus calculation dates maximises returns.
How to Open an Account
Accounts are opened online through the government website.
You will need:
Your National Insurance number
Access to your Government Gateway account
A bank account to link for deposits
The process is straightforward and usually takes only a few minutes.
Once open, you can set up monthly standing orders.
Is It Available to All Universal Credit Claimants
Not automatically.
Eligibility depends on having earnings within your Universal Credit assessment period.
People who are not working or who earn below the minimum income threshold in a particular month may not qualify.
This is because the scheme is designed to support working households on low incomes.
If your circumstances change and you no longer qualify, your account can remain open — you just cannot open a new one if you become ineligible later.
What Happens After Four Years
After four years, the account closes and you receive your final bonus.
You can then withdraw the total balance.
There is no extension beyond four years.
This structure encourages consistent saving over time.
How It Helps With Financial Resilience
One of the biggest financial challenges for low‑income households is lack of emergency savings.
Unexpected expenses — such as boiler repairs, car breakdowns or school costs — can lead to borrowing.
The Help to Save scheme is designed to build resilience.
Even saving £10 or £20 per month can create a financial cushion.
With the 50% bonus, that cushion grows faster than many people expect.
Does It Affect Universal Credit Payments
The savings themselves count as capital.
If your total savings exceed certain limits, Universal Credit payments may reduce.
However, many claimants remain well below the £6,000 lower capital threshold.
It is important to monitor your overall savings balance if building funds elsewhere.
The bonus itself does not count as income for Universal Credit purposes.
Common Misunderstandings
You must save £50 every month – False
You cannot withdraw – False
The bonus is paid monthly – False
It replaces Universal Credit – False
The scheme is voluntary and flexible.
Even small contributions qualify for the 50% bonus.
Why Awareness Is Still Low
Unlike more widely advertised schemes, Help to Save does not receive heavy marketing.
Many claimants focus on day‑to‑day survival rather than long‑term savings.
That is why voices like Martin Lewis continue to highlight it publicly.
Greater awareness means more households can benefit.
Is It Worth Opening If You Can Only Save Small Amounts
Yes.
Even saving £5 per month results in a 50% bonus on your highest balance.
Small steps matter.
Consistency is more important than the amount.
Over time, modest deposits grow into meaningful sums.
Key Points to Remember
The scheme offers a 50% government bonus.
It is available to eligible Universal Credit claimants.
You can save up to £50 per month.
Withdrawals are allowed but may reduce bonuses.
It runs for four years.
Final Thoughts
At a time when financial pressure remains high, finding ways to stretch income further is essential.
The 50% bonus scheme is one of the most generous savings incentives currently available to low‑income working households.
Martin Lewis’s message is simple: if you qualify, do not ignore it.
Even small monthly savings can grow significantly with government support.
For Universal Credit claimants able to put aside a little each month, this scheme offers a rare opportunity — a safe, flexible and highly rewarding way to build financial security over time.
In today’s climate, that is not something to overlook.