If you are a foster carer claiming Universal Credit, you may be able to use the government’s Help to Save scheme to build personal savings and receive a 50% government bonus on what you save.

We work with many foster carers and, where eligibility allows, this can be an effective way to create a small financial buffer without affecting benefits. This article explains who can apply, how the scheme works for foster carers, and when it may be worth considering.

Can foster carers apply for Help to Save?

Many foster carers can apply, but eligibility depends on how your Universal Credit claim is set up.

You can open a Help to Save account if:

• You are claiming Universal Credit, and
• In your most recent monthly assessment period, you or your partner had at least £1 of earnings

Fostering allowances are not treated as income for Universal Credit. Because of this, they do not count as earnings for Help to Save. In practice, this means:

• Foster carers with no other income may not qualify at the moment
• Foster carers with even small additional earnings often do qualify
• If a partner on the Universal Credit claim works, this will usually meet the requirement

Once the account is open, you can keep it for the full four years even if your circumstances change later.

Why Help to Save works well for foster carers

Many foster carers prefer to keep a clear distinction between money intended for children in their care and money for their own household. Help to Save supports this approach.

It allows you to:

• Build personal savings separate from fostering allowances
• Save small amounts in a flexible way
• Receive a government bonus
• Do this without reducing Universal Credit in most cases

The scheme is designed to help with unexpected costs and the changes that can arise between placements.

How the Help to Save scheme works

You can save between £1 and £50 each month. You do not need to save every month, and the amount can be changed at any time. Money can be withdrawn whenever it is needed.

The government adds a 50% bonus to what you save:

• After two years, a bonus is paid based on the highest balance you reached
• After four years, a second bonus is paid on any additional savings above that level

If you save the maximum amount over four years:

• Total savings: £2,400
• Government bonus: up to £1,200
• Total value: £3,600

Even if you need to dip into the savings, the bonus is based on the highest balance achieved, not the amount left at the end.

How Help to Save affects Universal Credit

Universal Credit is only affected if total savings go above £6,000. For most foster carers, Help to Save sits well below this threshold.

In most cases, this means:

• No reduction to Universal Credit
• No penalty for saving
• A straightforward way to build a small safety net

If you already have other savings, it is worth reviewing the overall position.

What Help to Save is, and what it is not

Help to Save is:

• For your personal savings
• Designed to support your household finances
• Flexible and low risk

It is not:

• A savings account for children in your care
• A replacement for child-specific savings
• Linked to fostering allowances

Any money saved for a child should always be kept separately and in the child’s name.

How to apply

You apply directly through the government. You will need:

• Your National Insurance number
• Your bank details
• A Government Gateway login

You can apply online, through the HMRC app, or by phone. Eligibility is checked automatically when you apply.

Our advice to foster carers

If you are a foster carer claiming Universal Credit and you have any additional earnings, Help to Save is well worth considering. It can help you:

• Build confidence around money
• Cope with unexpected costs
• Create breathing space between placements
• Strengthen your personal financial position

If you are unsure whether you qualify, or how this fits with your wider tax and benefits position, we are happy to help.