Skip to content

DWP Confirms Universal Credit Claimants Could Unlock £1,200 Bonus

  • by
DWP Confirms Universal Credit Claimants Could Unlock £1,200 Bonus

Millions of Universal Credit claimants across the UK may now be eligible for a generous £1,200 savings boost through the government’s Help to Save scheme. This extension makes it easier than ever to build a financial safety net without risking current benefits.

Key Details & Figures

ItemDetails
Total Universal Credit ClaimantsAround 8 million people currently claim Universal Credit in the UK.
Help to Save EligibilityEligible if you earn at least £1 in your previous assessment period; no higher earnings threshold.
Scheme ExtensionExtended until April 2027—previously set to end sooner.
Additional Eligible Claimants550,000 more working Universal Credit claimants now qualify, raising total eligibility to ~3 million.
Savings BonusGovernment gives a 50% bonus on savings—up to £1,200 over four years.
Deposit RangeSave £1–£50 per month, flexible contributions allowed.
Bonus Payout TimesBonus paid after year 2 and again after year 4.
Application MethodsVia GOV.UK website or HMRC app using National Insurance or postcode and UK bank details.
Current Account UsageOnly around 500,000 accounts opened since 2018, showing large take-up potential.

In-Depth Explanation

How the Scheme Works

The Help to Save initiative offers a 50% tax‑free bonus on savings deposited—between £1 and £50 per month—for up to four years. If you contribute the maximum each month, you could receive a bonus of £600 after two years and another £600 at the four‑year mark, totaling £1,200.

Expanded Eligibility

As of early 2025, the threshold to qualify dropped dramatically—from requiring earnings equivalent to 16 hours per week at the National Living Wage to as little as £1 per assessment period. This change opened access to an additional 550,000 working Universal Credit recipients, increasing total eligible participants to around 3 million.

Scheme Duration Extension

Originally slated to end in 2025, the scheme has now been extended until April 2027, giving eligible individuals ample time to apply and benefit.

Applying and Account Use

Opening an account is simple and free—done via GOV.UK or the HMRC app, requiring only your NI number or postcode and bank details. Once open, the account allows flexible savings and withdrawals, with bonuses calculated based on your highest balance during each two-year period.

Low Participation So Far

Despite the scheme’s benefits, take-up has been modest. Only around 500,000 Help to Save accounts have been opened since its 2018 inception, suggesting many eligible claimants are unaware.

The Help to Save scheme provides a powerful £1,200 savings boost for working Universal Credit recipients with only £1 in earnings.

With its extension to April 2027 and expanded eligibility, it’s a rare opportunity to grow savings risk-free. If eligible, setting up an account could be one of the most beneficial steps you take today.

FAQs

Who qualifies for Help to Save?

If you claim Universal Credit and have earned at least £1 in your last assessment period, you can apply—regardless of your work hours.

How does the £1,200 bonus work?

You save up to £50/month. A 50% bonus is paid after 2 years and again after 4 years, based on your highest savings balance.

Can I open an account today?

Yes—accounts are open until April 2027. Apply via GOV.UK or the HMRC app, using your NI number or postcode and bank details.

Leave a Reply

Your email address will not be published. Required fields are marked *