DWP Extra £1,200 Financial Boost: Starting from April 6, 2025, a major change to the Help to Save scheme means many people receiving Universal Credit (UC) could now be eligible to receive up to £1,200 in bonuses over four years. This change will make it easier for working individuals on low incomes to save money and build financial security—without needing to meet previous income thresholds.
What Is the Help to Save Scheme?
The Help to Save scheme is a UK government initiative run by HMRC to help low-income earners build savings. It rewards savers with a 50% bonus, which means for every £1 you save, the government gives you 50p extra.
You can save up to £50 a month, and the maximum bonus you can earn is £1,200 over 4 years.
What’s Changing from April 2025?
Previously, to qualify for Help to Save, Universal Credit claimants needed to earn the equivalent of 16 hours a week at National Living Wage. From April 6, 2025, this earnings threshold will be removed.
New eligibility rule:
Any working UC claimant who earned £1 or more in their previous assessment period will now qualify.
This change allows many more households—especially those in part-time or irregular jobs—to access the scheme and receive government savings bonuses.
How Much Can You Save and Earn?
- Save: Up to £50 per month (you don’t have to save every month)
- Bonus: 50% of what you save
- Total bonus over 4 years: Up to £1,200
- You’ll receive the bonus in two parts:
- After 2 years: 50% of your highest savings balance
- After 4 years: Another 50% bonus if you’ve continued saving
Important: Even if you withdraw your savings early, you’ll still get the bonus based on your highest balance.
Who Is Eligible?
From April 2025, you are eligible if:
- You’re on Universal Credit, and
- You earned at least £1 in your last assessment period
- You may also be eligible if you receive Working Tax Credit.
- This change helps more working families and individuals who previously earned too little to qualify.
Why This Change Matters
According to HMRC and DWP, the goal is to:
- Improve financial inclusion
- Help low-income earners save money
- Provide support during financial emergencies
- Make saving easier for people with unstable or part-time work
The government has also confirmed the scheme will run on current terms until April 2027. Beyond that, they are considering new partnerships with banks to continue the scheme with better accessibility.
How to Apply for Help to Save
You can apply online via:
https://www.gov.uk/get-help-savings-low-income
All you need is:
- A Government Gateway account
- Your National Insurance number
- Your bank account details for withdrawals
The Help to Save scheme is a simple, flexible, and powerful way for low-income workers on Universal Credit to grow their savings—with the government adding up to £1,200 in bonuses over four years. With the new rule starting in April 2025, even more people will qualify. If you’re working—even if just part-time—and receive UC, it’s worth checking if you’re eligible.
It’s a great time to start saving, earn free bonuses, and take small steps toward financial stability. To see if you qualify or to open an account, visit the official Help to Save page today.
FAQ’s
What is the Help to Save scheme?
Help to Save is a government savings scheme offering a 50% bonus on savings of up to £50 per month for low-income earners, with up to £1,200 bonus over 4 years.
Who qualifies for Help to Save from April 2025?
All working Universal Credit claimants who earned £1 or more in their last assessment period will be eligible, even if they work part-time.
Do I need to save every month to earn the bonus?
No, you can save as little or as much as you like each month, up to £50. Bonuses are based on your highest savings balance.
Can I still earn a bonus if I withdraw my savings?
Yes, you will still receive the bonus based on the highest amount you’ve saved, even if you withdraw money during the 4 years.
How do I open a Help to Save account?
You can apply online at GOV.UK using your Government Gateway account, National Insurance number, and bank account details.
