DWP Launches New Scheme—Universal Credit Claimants May Earn £1,200 Bonus

The UK’s Department for Work and Pensions (DWP)—in partnership with National Savings & Investments (NS&I)—has recently expanded its Help to Save programme.

Universal Credit recipients who earn just £1 or more per month can now benefit from £1,200 in total bonuses over four years, marking it as one of the most generous savings schemes for low-income households in the UK

What Is Help to Save?

Help to Save is a government-backed savings plan that:

Allows monthly deposits between £1–£50
Offers a 50% bonus on savings at two key milestones—after 2 years and after 4 years
Enables savers to earn up to £1,200 bonus on a maximum £2,400 saved over four years

Updated Eligibility – As of April 2025

Open to all Universal Credit claimants who earned at least £1 in their last assessment period
Previously required earnings equivalent to 16 hours/week at the National Living Wage (~£793/month)
This policy change makes an additional ~550,000 people eligible, raising total across UK to around 3 million

Key Features

Feature	Detail
Monthly Savings	£1–£50 per month
Total Possible Own Savings	£2,400 over 4 years
Bonus Rate	50% of peak balance during each 2-year period
Maximum Bonus	£600 at year 2 + £600 at year 4 = £1,200
Bonus Frequency	End of year 2 and end of year 4
Account Access	Can withdraw anytime; bonus is based on highest balance
Security	NS&I-backed, 100% HM Treasury guarantee
Application Deadline	Open to April 2027

How It Works – Step by Step

Apply online via GOV.UK or the HMRC app using Government Gateway, NI number, and bank details.
Save between £1–£50 each month.
Earn bonuses:
- Year 2: 50% of your highest balance.
- Year 4: 50% of increase above your Year 2 peak
Withdraw anytime; the bonus is calculated on the highest balance reached, not current balance

Scheme Benefits

Flexible access — suitable for emergencies without losing the bonus
Risk-free and tax-free — guaranteed by the government
Inclusive — no earnings threshold apart from £1/month
Encourages financial resilience — helps build savings for unexpected costs

Why This Matters

A significant number of households live with minimal savings. Help to Save not only offers a built-in 50% return, but its recent eligibility expansion means that low-income working families have a realistic opportunity to build a financial safety net—up to £3,600 in total value (own savings + bonus).

The enhanced Help to Save scheme is a powerful tool for low-income households, offering a guaranteed £1,200 bonus over four years, flexible withdrawals, and Government-backed security.

Universal Credit recipients earning just £1 monthly can now build stronger financial resilience. Apply by April 2027 to benefit.

FAQs

Who qualifies?

Anyone on Universal Credit earning £1 or more in their last assessment period. No additional earnings required at account opening

What affects the bonus?

Bonuses are based on your highest balance during each 2-year window. Withdrawals don’t penalize you if you’ve hit peak balance earlier

When should I apply?

Apply before April 2027. Accounts stay open for four years even if your benefits change