Comparison · Savings · 2026
Help to Save vs Lifetime ISA UK 2026: Which Bonus Scheme Wins?
Help to Save and the Lifetime ISA (LISA) are the two main government savings-bonus schemes in the UK, but they target very different savers. Help to Save is a benefits-linked scheme for people on low incomes; the LISA is open to anyone aged 18-39 saving for a first home or retirement. Here is how the bonuses, eligibility and withdrawal rules compare for 2026.
TL;DR - 30-Second Summary
- - Help to Save: for Universal Credit/Working Tax Credit claimants, 50% bonus on up to £50/month, capped bonus around £1,200 over 4 years
- - Lifetime ISA: open to anyone 18-39, 25% bonus on up to £4,000/year (within the £20,000 ISA allowance), for a first home or age 60+
- - Withdrawal flexibility: Help to Save can be accessed anytime; LISA withdrawals outside the rules trigger a 25% charge
Side by Side: Help to Save vs LISA
| Feature | Help to Save | Lifetime ISA |
|---|---|---|
| Eligibility | On Universal Credit (with sufficient earnings) or Working Tax Credit | Anyone aged 18-39, no income test |
| Bonus rate | 50% | 25% |
| Maximum contribution | £50/month | £4,000/year |
| Purpose restriction | None — withdraw anytime for any reason | First home (up to £450,000) or age 60+ only |
| Early withdrawal penalty | None | 25% government charge |
| Scheme length | 4 years per account | Contributions until age 50; account stays open after |
Who Should Choose What?
Consider Help to Save if...
- - You receive Universal Credit or Working Tax Credit
- - You can only save small, flexible amounts each month
- - You want penalty-free access to your money
Consider a LISA if...
- - You are 18-39 and saving specifically for a first home or retirement
- - You can commit larger sums without needing early access
- - You want the biggest possible cash bonus on a larger contribution
Frequently Asked Questions
Who can open a Help to Save account?
Help to Save is aimed at people on low incomes who are entitled to Working Tax Credit, or who are claiming Universal Credit and earned at least the equivalent of 16 hours a week at National Living Wage in their last monthly assessment period. It is not available to everyone the way a Lifetime ISA is.
Who can open a Lifetime ISA?
Anyone aged 18 to 39 can open a Lifetime ISA (LISA), regardless of income. You can pay in up to £4,000 a year (part of your overall £20,000 ISA allowance for 2026/27) until age 50, and the government adds a 25% bonus on top.
How does the Help to Save bonus work?
You can save up to £50 a month for up to 4 years. At the end of year 2 and year 4, the government pays a tax-free 50% bonus on the highest balance saved, up to a maximum bonus of £1,200 over the full 4 years (check gov.uk/get-help-savings-low-income for the current rules, as the scheme has been extended multiple times).
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How does the Lifetime ISA bonus compare?
The LISA bonus is 25% of what you pay in, added monthly, up to £1,000 a year on the maximum £4,000 contribution — a bigger cash bonus than Help to Save if you can afford to save more, but restricted to buying a first home (up to £450,000) or withdrawing after age 60.
Can I withdraw Help to Save money whenever I want?
Yes. Unlike a LISA, you can withdraw money from a Help to Save account at any time without losing the bonus already earned, though withdrawing reduces the balance the bonus is calculated on at the next milestone.
What happens if I withdraw from a LISA for the wrong reason?
Withdrawing from a LISA for anything other than a first home purchase, terminal illness, or after age 60 triggers a 25% government withdrawal charge, which claws back your bonus and a little of your own money too.
Can I have both a Help to Save account and a Lifetime ISA?
Yes, the two schemes are entirely separate and you can hold both if you are eligible for Help to Save (based on benefits) and are aged 18-39 for the LISA. There is no rule preventing you from using both to maximise government bonuses.
Which is better for a low-income first-time buyer?
If you are on Universal Credit or Working Tax Credit and eligible for Help to Save, it is a no-risk way to build a small savings buffer with a generous 50% match. For a house deposit specifically, a Lifetime ISA usually adds more in cash terms if you can commit £4,000 a year, but Help to Save is easier to access if your budget is closer to £50 a month.
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Disclaimer: This is educational information, not financial advice. Help to Save and Lifetime ISA rules can change — always check the current terms at gov.uk/get-help-savings-low-income and gov.uk/lifetime-isa before opening an account.
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