The Department for Work and Pensions (DWP) has confirmed that thousands of people on Universal Credit can benefit from a £1200 Bonus under the extended Help to Save scheme. This savings programme, supported by HMRC, rewards low-income households for building financial security. By extending the scheme until April 2025, the government has given claimants more time to take advantage of this rare opportunity to boost their savings.
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How to Claim the DWP £1200 Bonus Under Help to Save Scheme
| Scheme Name | Help to Save |
| Maximum Bonus | £1200 over four years |
| Savings Limit | £1–£50 per month |
| Eligibility | Universal Credit, Tax Credit claimants |
| Deadline | April 2025 |
Learn About the Help to Save Scheme?
Help to Save is a government-backed savings plan created for people on low incomes. It allows eligible claimants to save between £1 and £50 each month and receive a 50% bonus on the highest balance. This means that regular savers can earn a sizeable government reward without losing flexibility.
How the £1200 Bonus Works
The scheme pays two bonuses over four years:
- First Bonus – After two years, the saver receives 50% of their highest balance. For example, saving £50 each month (£1,200 total) brings a £600 bonus.
- Second Bonus – After four years, a further 50% bonus is added based on additional savings made in the last two years. This can provide another £600.
In total, savers can earn up to £1200 Bonus from the government, resulting in as much as £3,600 when personal savings are included.
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Main Features of the Help to Save Account
- Save between £1 and £50 each month.
- Flexibility to skip deposits if needed.
- Withdrawals allowed anytime, but they may reduce the final bonus.
- Accounts run for four years and close automatically at the end.
- Only one Help to Save account can be opened per person.
Who is Eligible to Open an Account?
Eligibility is limited to specific groups:
- Universal Credit claimants with take-home pay of at least £1 in the most recent assessment.
- People entitled to Working Tax Credit or receiving Child Tax Credit alongside Working Tax Credit.
- Applicants must live in the UK.
Special rules allow Crown servants, armed forces members, and their partners living abroad to apply. Couples on joint benefits can both apply, but each must open their own account.
Why the Extension Important
Originally scheduled to end in September 2023, the scheme has been extended until April 2025. Despite 359,000 accounts being opened since 2018, around three million more people are still eligible but have not yet applied. Extending the deadline gives households more time to secure the £1200 Bonus and build a savings habit.
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Benefits Beyond the Bonus
The scheme is more than just free money:
- Encourages saving habits among low-income families.
- Provides a safety net against unexpected costs.
- Reduces reliance on high-interest borrowing.
- Builds long-term financial confidence.
For households struggling with rising bills and daily expenses, the Help to Save scheme provides a realistic way to improve financial stability.
Things to Remember
- Closing the account early means losing unpaid bonuses.
- Missing deposits does not disqualify you but reduces your potential bonus.
- Once the four years end, you cannot open another Help to Save account.
Understanding these conditions helps claimants maximise the benefit of the £1200 Bonus.
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FAQs About Universal Credit Claimants Set for £1200 Bonus Boost
You can receive up to £1200 in government bonuses over four years.
No, the scheme is flexible. You can skip months, but saving regularly increases your bonus.
Yes, withdrawals are allowed, but they may reduce the bonus amount.
The account closes automatically after four years, and you cannot open a new one.
Yes, but each partner must open their own account to qualify for the £1200 Bonus.
The DWP’s extension of Help to Save is a golden opportunity for Universal Credit claimants to earn up to a £1200 Bonus. In times of rising costs, this scheme is more than a government incentive – it is a pathway to better financial security. Claimants who take advantage of the programme not only receive extra funds but also build lasting savings habits.
