DWP Savings Bonus Worth £1,200: If you’re receiving Universal Credit or Working Tax Credit, there’s good news that could give your savings a serious boost. The DWP Savings Bonus Worth £1,200, available through the UK government’s Help to Save scheme, is designed to encourage people on low incomes to build up a financial safety net. With inflation and rising costs making it harder to put money aside, this scheme is a golden opportunity. By saving as little as £1 a month, you could earn up to £1,200 in bonuses over four years — and you don’t even need to save every month to qualify.
DWP Savings Bonus Worth £1,200
The Help to Save scheme is a simple, accessible way to make the most of your money if you’re on a low income. With the potential to earn up to £1,200 in tax-free bonuses, it’s one of the most generous savings opportunities available today — and it’s backed by the UK government. If you’re eligible, don’t wait. Setting up an account takes minutes, and the benefits can last for years. And with eligibility expanding in 2025, even more people will be able to access this powerful savings tool.
| Feature | Details |
|---|---|
| Bonus Rate | 50% of the highest balance over 2 and 4 years |
| Maximum Bonus | Up to £1,200 across 4 years |
| Monthly Savings Range | £1 to £50 |
| Eligibility | Universal Credit (with at least £793.17 earnings), Working Tax Credit, or Child Tax Credit with Working Tax Credit |
| Account Duration | 4 years |
| Withdrawals Allowed | Yes, but they may reduce your bonus |
| Application Link | Apply via GOV.UK |
| Upcoming Change | From April 2025, all working Universal Credit claimants will qualify, regardless of earnings |
What Is the Help to Save Scheme?
Help to Save is a government-backed savings account created by HM Revenue & Customs (HMRC) to support people on low incomes. It rewards savers with a 50% bonus on their savings, paid at two-year intervals over a four-year period.
This scheme is meant to help people:
- Create a habit of regular saving.
- Build a financial buffer for emergencies.
- Increase their long-term financial resilience.
And the best part? Even if you save a small amount, you’ll still earn a bonus proportionate to what you’ve saved.
How the Bonuses Work: Real-Life Example
Let’s break it down with an easy example:
If you save £50 per month for two years:
- You’ll have saved £1,200.
- You get a £600 bonus from the government.
If you keep saving £50/month for another two years:
- You save another £1,200 (bringing your total to £2,400).
- You receive a second £600 bonus.
Total savings = £2,400 + £1,200 in bonuses = £3,600
If you can’t save the full £50 every month, don’t worry. The bonus is based on the highest balance you’ve achieved — not how regularly you save.
Who Can Open a Help to Save Account?
You can apply if you’re:
- Receiving Working Tax Credit, OR
- Entitled to Child Tax Credit and also receiving Working Tax Credit, OR
- Receiving Universal Credit and earned at least £793.17 in your last monthly assessment period.
Important: From April 2025, the scheme will open to all working Universal Credit claimants, regardless of how much they earn — making it more inclusive.
Step-by-Step Guide: How to Apply for the DWP Savings Bonus Worth £1,200?
Here’s how to open your Help to Save account in under 5 minutes:
1. Go to the official website:
Apply via GOV.UK
2. Sign in or create a Government Gateway account.
You’ll need:
- Your National Insurance number
- A UK bank or building society account
- Government Gateway credentials (create one if you don’t have it)
3. Start saving!
Once your account is open, you can begin making deposits right away.
Managing Your Help to Save Account
Making Deposits
- Save between £1 and £50 a month
- Use a standing order or manual bank transfer
- You’re not required to save every month
Withdrawing Money
- You can withdraw funds at any time
- But it may reduce your bonus if it lowers your highest saved balance
Duration
- Your account lasts for 4 years
- After that, it automatically closes, and no further contributions can be made
Expert Tips to Maximize Your Bonus
- Start with what you can afford: Even £10 a month adds up and qualifies you for a bonus.
- Avoid unnecessary withdrawals: To maintain your highest balance and get the most bonus.
- Automate your savings: A standing order ensures you don’t forget.
- Track your progress: Log into your account regularly to see how close you are to your bonus.
- Plan ahead: Use the bonuses strategically — for emergencies, education, or a financial cushion.
What’s Changing in 2025?
The Spring Budget 2024 announced that eligibility for Help to Save will expand from April 2025. Currently, many low-income earners are excluded because of the £793.17 monthly earnings threshold. From April 2025, anyone working and on Universal Credit will be able to open an account — dramatically increasing the number of people who can benefit.
This is a welcome change, especially given that:
- Over 5.6 million people currently claim Universal Credit
- The average UK household savings rate is still below pre-pandemic levels
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Frequently Asked Questions About DWP Savings Bonus Worth £1,200
Q1: Can I have more than one Help to Save account?
No. You’re allowed one account per person.
Q2: What if I stop receiving Universal Credit?
You can continue to use the account and earn bonuses, as long as it stays open within the 4-year window.
Q3: Are Help to Save bonuses taxed?
No, all bonuses earned are completely tax-free.
Q4: Can both partners in a household open an account?
Yes. If both are eligible individually, each can open their own Help to Save account.
Q5: Will having this account affect my benefits?
No. Help to Save is designed not to affect your entitlement to other benefits like Universal Credit.
