DWP Universal Credit claimants can get up to £1,200 in extra cash | Personal Finance | Finance

HM Revenue and Customs (HMRC) has confirmed that additional families on Universal Credit can now benefit from a scheme offering up to £1,200 in savings.

What was initially a temporary initiative has been made permanent, with HMRC revealing that from April 2028, approximately 1.5 million more households will become eligible through expanded qualifying conditions.

Chancellor Rachel Reeves secured the future of the Help to Save scheme during last month’s Budget, despite its original end date of 2027. HMRC later shared on X, formerly Twitter: “Help to Save is here to stay – and more families can benefit.”

The department added: “The scheme has been made permanent, and from April 2028, up to 1.5 million more families will be eligible thanks to expanded criteria. That means more support for those on low incomes, including people on Universal Credit with caring responsibilities.”

Recent data from HMRC shows that nearly half a million individuals on modest incomes have already received over £220 million through Help to Save bonus payments, with bonuses reaching as much as £1,200.

With Department for Work and Pensions (DWP) statistics indicating around 8.3 million people currently receive Universal Credit, millions of households could potentially benefit from this programme.

Help to Save, an initiative introduced by the UK Government, aims to encourage savings among those with lower incomes by offering a 50% bonus on their saved funds.

Participants can deposit anywhere between £1 and £50 each month, earning an additional 50p for every £1 they save.

If savers manage to accumulate the maximum amount of £2,400 over a four-year period (£50 per month), they’ll receive a total bonus of £1,200, which will be transferred into their bank accounts at the end of the second and fourth year.

A significant proportion of customers, approximately one in five, have chosen to open a Help to Save account via the HMRC app, which allows users to monitor their deposits and view their bonus payments.

Deposits into Help to Save accounts can be made through various methods including debit card, standing order or bank transfer. Withdrawals are allowed at any time, but it’s worth noting that this could impact your bonus.