Universal Credit Claimants Could Secure Up to £1,200 in Government Savings Bonus
Millions of individuals receiving Universal Credit have been alerted to a significant opportunity to boost their savings with government-backed bonus payments of up to £1,200. The Help to Save account, a permanent initiative reinforced by Chancellor Rachel Reeves in the Autumn Budget, provides a 50p bonus for every £1 saved, incentivizing households to accumulate funds over time.
How the Help to Save Scheme Operates
Participants can deposit between £1 and £50 each calendar month, with no obligation to contribute every month. The scheme spans up to four years, during which savers can earn a maximum of £1,200 in government bonuses. HM Revenue and Customs (HMRC) recently promoted the scheme on social media, urging eligible claimants to verify their qualification and apply via the HMRC app.
Originally scheduled to conclude in 2027, the program has been extended indefinitely and expanded to include up to 1.5 million additional families by April 2028. This expansion encompasses some Universal Credit recipients with caring responsibilities, broadening access to financial support.
Key Features and Eligibility Criteria
Deposits can be made using debit cards, standing orders, or bank transfers, with multiple transactions allowed per month as long as the total does not exceed £50. For instance, if someone saves £50 by January 8, they cannot add more funds until February 1. Withdrawals are permitted only into the saver's personal bank account.
Government bonuses are disbursed twice: after two years and again after four years, based on the total savings accumulated. The account automatically closes after four years, and once closed, it cannot be reopened. Early closure results in forfeiture of the next bonus and prohibits opening another account.
Eligibility requires claimants to have had a take-home pay of £1 or more in their last monthly assessment period, with take-home pay defined as earnings after tax and National Insurance deductions. Couples on joint Universal Credit claims can each open separate accounts, and applicants must typically reside in the UK, though exceptions apply for Crown servants, armed forces members, and their spouses or civil partners overseas.
Security and Continuity
The Help to Save scheme is government-backed, ensuring all savings are secure. Individuals who cease claiming benefits can continue using their accounts, providing long-term financial stability. This initiative aims to encourage savings habits among low-income households, offering a tangible boost to economic resilience.
