DWP Confirms £1,200 Bonus for Universal Credit Claimants: The UK government has officially confirmed that Universal Credit claimants can receive a £1,200 bonus through the Help to Save scheme. This initiative encourages low-income workers to build financial resilience by offering a 50% bonus on savings over a four-year period. With rising living costs, the Help to Save scheme is a crucial financial support tool for individuals looking to set aside money for emergencies or future expenses. This guide breaks down eligibility, payment dates, application steps, and financial planning tips to help you maximize the benefits.
DWP Confirms £1,200 Bonus for Universal Credit Claimants
The Help to Save scheme is a lifeline for Universal Credit claimants looking to build financial stability. With a potential £1,200 bonus, this program encourages savings and provides much-needed financial security. To start saving today, apply through GOV.UK before the April 2025 deadline.
| Key Information | Details |
|---|---|
| Scheme Name | Help to Save |
| Maximum Bonus | £1,200 over four years |
| Eligibility | Universal Credit and Working Tax Credit claimants |
| Monthly Savings Limit | £1 to £50 per month |
| Bonus Payment Schedule | Paid at the end of the 2nd and 4th years |
| Application Deadline | Open until at least April 2025 |
| Official Resource | GOV.UK Help to Save |
Why is the Government Offering a £1,200 Bonus?
The Help to Save scheme was introduced by the UK government to support low-income individuals in building emergency funds. Many Universal Credit claimants struggle to save due to financial constraints, making them more vulnerable to unexpected expenses.
This scheme aligns with broader economic policies that encourage financial responsibility, reduce reliance on crisis loans, and create a stronger social safety net.
By incentivizing savings, the government aims to:
- Reduce financial stress for low-income individuals.
- Encourage long-term financial planning.
- Minimize reliance on short-term borrowing and payday loans.
How Does the Help to Save Scheme Work?
The Help to Save scheme rewards participants with a 50% government bonus on their highest savings balance. Here’s how it works:
1. Deposit Money Monthly
- Save any amount between £1 and £50 per month.
- You do not have to deposit every month.
2. Earn a 50% Bonus
- After 2 Years: You’ll receive 50% of your highest savings balance as a bonus.
- After 4 Years: You’ll get another 50% bonus on additional savings made in the last two years.
3. Maximum Bonus of £1,200
- If you save £50 per month (totaling £2,400 over four years), you’ll receive £1,200 in government bonuses.
Who is Eligible for the Help to Save Scheme?
To qualify for the £1,200 bonus, you must:
- Be receiving Universal Credit and have a monthly income of at least £722.45 in your last assessment period.
- OR be receiving Working Tax Credit (or be entitled to Working Tax Credit with Child Tax Credit).
- Be a UK resident.
Upcoming Change in April 2025
- The scheme will be expanded to all working Universal Credit claimants regardless of income level.
How to Apply for the 1,200 Bonus for Universal Credit Claimants?
Applying is easy and free. Here’s how you can do it:
- Go to the GOV.UK Website
- Visit www.gov.uk/get-help-savings-low-income.
- Sign in with Your Government Gateway Account
- If you don’t have one, create a Government Gateway ID.
- Enter Personal Information
- Provide your National Insurance number, bank details, and benefit information.
- Start Saving
- Once your account is open, you can start making deposits.
Application Deadline
- The scheme is open until at least April 2025, but applying early ensures maximum benefits.
Financial Planning Tips to Maximize Your £1,200 Bonus
Here are some expert strategies to help make the most of your savings:
- Set Up a Standing Order
- Automate monthly deposits to ensure consistent savings.
- Save What You Can Afford
- Even if you can’t save £50 per month, smaller amounts still earn a bonus.
- Avoid Unnecessary Withdrawals
- Since bonuses are based on your highest balance, avoid frequent withdrawals.
- Combine with Other Savings Schemes
- Consider using a Lifetime ISA or credit union savings plan for additional benefits.
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Common Questions About the Help to Save Scheme
1. Do I have to save every month?
No, you can save as little or as much as you can afford each month (up to £50).
2. What happens after four years?
Your account will close automatically, and you’ll keep all savings and bonuses.
3. Can I withdraw money at any time?
Yes, but withdrawing may reduce your final bonus.
4. Is the bonus taxable?
No, the bonus is tax-free and does not affect your benefits.
5. Can I apply if I’m self-employed?
Yes, as long as you receive Universal Credit or Working Tax Credit
Success Stories: How the Scheme Has Helped People
Anna, 45 – A Universal Credit Claimant
Anna, a single mother, started using Help to Save in 2021. She saved £30 per month, earning a £720 bonus after four years. This allowed her to cover unexpected expenses and plan for her children’s future.
Mark, 52 – A Part-Time Worker on Universal Credit
Mark struggled with saving until he joined the scheme. By depositing small amounts regularly, he received £500 in government bonuses, which helped pay off a credit card bill.
