Universal Credit Claimants Can Access Up to £1,200 Bonus

The Department for Work and Pensions (DWP) has announced that individuals claiming Universal Credit may now benefit from a bonus of up to £1,200 through the extended Help to Save scheme. This initiative, which has been active since 2018, aims to assist low-income earners in building their savings and enhancing their financial stability.

As of now, there are approximately 8 million people receiving Universal Credit in the UK. Under the latest rule change, around 3 million of these claimants are eligible to participate in the Help to Save scheme until April 2027. This extension provides a valuable opportunity for many working claimants who may not be aware of their eligibility for this beneficial scheme.

Since its inception, the Help to Save programme has distributed millions in bonuses to over 500,000 participants. A significant 93 percent of users regularly contribute the maximum amount of £50 each month to their Help to Save accounts, demonstrating the scheme’s popularity.

Understanding the Help to Save Scheme

The Help to Save scheme allows individuals to deposit between £1 and £50 each month, with participants earning an additional 50p for every £1 saved. The bonuses are awarded at the end of the second and fourth years after the account is established.

For instance, a participant who deposits the maximum amount of £2,400 over four years will receive a total bonus of £1,200. These payments are made at the conclusion of the second and final year. Users can manage their accounts easily via the GOV.UK website or the HMRC app, which makes it accessible to a wide audience across the UK.

Furthermore, individuals can withdraw funds at any time; however, doing so may affect the bonus amounts. The bonuses are calculated based on the highest balance held in the account, allowing for significant potential rewards for consistent savers.

How to Get Started with Help to Save

Opening a Help to Save account is straightforward and can be completed in a matter of minutes. There is no requirement to deposit funds immediately, which allows individuals to secure their eligibility even if they are currently unable to save. Payments can be made by debit card, standing order, or bank transfer, with a maximum monthly contribution capped at £50.

To qualify for the Help to Save scheme, claimants must be receiving Universal Credit and have a take-home pay of at least £1 in their last monthly assessment period. Both individuals and couples can apply for separate accounts, provided they each meet the eligibility criteria.

Claimants can continue to use their Help to Save account even if they stop receiving benefits. Notably, participation in the scheme does not affect ongoing Tax Credits or Universal Credit payments, allowing individuals to save without fear of losing financial support.

For further details or to set up a Help to Save account, individuals can visit the official GOV.UK website. This initiative represents a proactive step towards improving financial resilience among low-income earners in the UK, empowering them to save for the future.