£1,200 Universal Credit Bonus for Everyone – Check Full Eligibility Criteria and Claim Process

The UK government’s Help to Save scheme is offering a unique opportunity for people on Universal Credit to save money and earn generous bonuses.

This initiative has already helped over half a million people and continues to open doors for even more low-income earners, with potential bonuses of up to £1,200 over a period of four years. Here’s a closer look at how this scheme works and how it can benefit you.

What is the Help to Save Scheme?

The Help to Save scheme is designed to help individuals on Universal Credit save money. It provides an opportunity to earn a 50% bonus on the savings you make, no matter how small the deposit is.

The scheme has been running since 2018 and has recently been extended until April 2027, allowing even more people to take advantage of this opportunity.

Eligible individuals can save between £1 and £50 per month, and for every £1 saved, the government adds 50p on top, creating a substantial bonus. The rewards are paid out in the second and fourth years of saving.

This could mean as much as £1,200 in bonuses for someone who saves the maximum amount each month.

Who is Eligible for Help to Save?

Eligibility for the scheme is simple. You need to be on Universal Credit, and your last monthly assessment period must show that you earned at least £1 (this includes your partner’s income if you are making a joint claim).

Importantly, the scheme is open to anyone who meets this requirement, even if they have a low income.

If you’re living with a partner who also qualifies, both of you can apply for your own individual Help to Save accounts. Additionally, the scheme is open to Crown servants, such as government employees, and members of the British Armed Forces, including their spouses or civil partners.

How Does the Help to Save Scheme Work?

Once you open a Help to Save account, you can start saving by depositing between £1 and £50 per month.

Every month you deposit, the government will add 50p for every £1 you save. This bonus will accumulate over time, and you can access it after two and four years of saving.

Withdrawals can be made from the account at any time, but it’s important to note that making a withdrawal could affect the bonus you earn.

The bonus is based on the highest balance you maintain in the account. So, if you withdraw funds and reduce your balance, it could impact how much bonus you earn.

Benefits of Help to Save

Since its launch, the Help to Save scheme has already distributed millions in bonuses, helping over 500,000 participants.

The scheme provides a valuable opportunity to build financial resilience, especially for those on low incomes, and encourages people to save even small amounts regularly.

With many people saving the full £50 each month, it’s clear that this scheme has been successful in motivating people to save and build up their savings.

The added benefit of a 50% government bonus makes it even more attractive for those who might find it difficult to save money.

The HMRC app is another useful feature of the Help to Save scheme, allowing users to easily manage their accounts, track their savings, and make deposits. More than 18,500 users opened a Help to Save account through the app in 2024 alone.

What Experts Say About Help to Save

Michelle Highman, the Chief Executive of The Money Charity, praised the scheme, saying, “It’s a brilliant way for people to start saving and build their financial resilience and futures.”

She emphasized that even saving a little each month can make a big difference, and the 50% bonus is an excellent incentive for those who are eligible.

Emma Reynolds, Economic Secretary to the Treasury, also highlighted the importance of the scheme, saying, “Security for working people is at the heart of our Plan for Change.

We want more people to have a bit in the kitty for a rainy day, which is why we are giving hundreds of thousands more working families on tight budgets access to this support.”

The Help to Save scheme is an excellent way for low-income workers and people on Universal Credit to build up savings while benefiting from a 50% bonus.

It’s never too late to get started, and with the scheme now available to more people, the benefits are greater than ever. If you’re eligible, consider signing up and taking full advantage of this government-supported initiative to secure your financial future.

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