Universal Credit recipients eligible for up to £1,200 bonus

The scheme has already distributed millions in bonuses since it started, and now more people will qualify to sign up
More than half a million people in the UK could benefit from a savings scheme that could see them get cash bonuses of up to £1,200. According to HM Revenue and Customs (HMRC) more people on Universal Credit are now eligible for the Help to Save scheme, which has been running for seven years.
Now open to any qualifying working person receiving Universal Credit, an extra 550,000 people are eligible to start saving and earning sizable bonuses, which could amount to a total of £1,200 across four years. By prolonging Help to Save until April 2027, the initiative will enable more low-income earners to reap the rewards of the programme.
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As reported by the Daily Record, the scheme has already distributed millions in bonuses to over 500,000 participants since its initiation in 2018. A remarkable 93 per cent of account holders have consistently deposited the full £50 monthly into their Help to Save accounts.
Economic secretary Emma Reynolds commented on the scheme: "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."
Myrtle Lloyd, HMRC's director general for customer services, commented: "Thousands of customers have already benefitted from Help to Save and many more are now eligible to get a great return of 50 per cent on top of their savings, no matter how little you can save each month. Go online or via the HMRC app to find out more and apply today."
Individuals can put away £1 to £50 monthly to earn an additional 50p for every pound saved, with rewards disbursed in the second and fourth year after opening the account.
Withdrawals from the accounts are permitted anytime, although this might impact the size of the 50 per cent bonus, which is calculated based on the highest balance maintained in the account.
Close to 18,500 users opened up a Help to Save account using the HMRC app in 2024. The app provides a platform for account holders to oversee their funds, inspect balances and bonuses, and deposit money using a debit card, bank transfer or standing order.
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Michelle Highman, chief executive of The Money Charity, expressed her enthusiasm regarding the scheme: "We are really pleased to see the Help to Save scheme extended and made available to more people. It's a brilliant way for people to start to save and to build their financial resilience and futures.
"Saving even just a little each month will help, and the added 50 per cent bonus payment from the Government means that if you are eligible, then it's a great place to boost your savings."
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Eligibility
You're eligible to open a Help to Save account if you're on Universal Credit and your last monthly assessment period showed a take-home pay of £1 or more (this includes your partner's income if it's a joint claim).
Your take-home pay is what you earn after deductions such as tax or National Insurance. If you receive payments as a couple, both you and your partner can apply for individual Help to Save accounts. However, each application must be made separately.
Additionally, you need to be residing in the UK. If you're living abroad, you can still apply for an account if you're either a:
Crown servant or their spouse or civil partner
Member of the British armed forces or their spouse or civil partner.
For further information and to set up your Help to Save account, visit the GOV.UK website here.

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