£1200 DWP Bonus for Universal Credit Claimants, Eligibility and Payment Dates

As the cost of living rises, the UK government offers low-income households a powerful tool to build financial resilience: the Help to Save scheme. This initiative, managed by the Department for Work and Pensions (DWP), allows eligible individuals to earn up to a £1,200 bonus over four years. Designed to support Universal Credit and Working Tax Credit claimants, the scheme encourages consistent saving by providing a 50% bonus on savings.

This article covers the scheme’s eligibility, application process, bonus structure, tips for maximizing savings, and other financial support programs available to Universal Credit claimants.

£1200 DWP Bonus for Universal Credit Claimants

The Help to Save scheme is a government-backed initiative designed to help low-income households save regularly and build a financial safety net. By offering a generous 50p bonus for every £1 saved, the scheme makes it easier for individuals to grow their savings over time.

Feature	Details
Maximum Monthly Savings	£50
Maximum Bonus	£1,200 over four years
Bonus Distribution	Paid at the end of years 2 and 4
Flexibility	Adjust savings as needed without penalties
Withdrawal Option	Accessible funds, though withdrawals affect bonuses

Bonus Calculation Example

• Monthly Savings: £50
• Total Saved Over 4 Years: £2,400
• Bonus After 2 Years: £600
• Bonus After 4 Years: £600
• Grand Total (Savings + Bonus): £3,600

Eligibility for the DWP £1,200 Bonus

To qualify for the Help to Save scheme, applicants must meet the following conditions:

• Working Tax Credit Claimants: Receiving or entitled to Child Tax Credit and Working Tax Credit.
• Universal Credit Claimants:
  • Must have earned at least £722.45 in take-home income during their last assessment period.

Changes to Eligibility in April 2025

Starting April 2025, the scheme will expand to include all working Universal Credit claimants, regardless of income. This change will enable a broader range of individuals to benefit from the program.

How Does the Help to Save Scheme Work?

Step-by-Step Application Process

1. Visit the Official Website: Go to the Help to Save website.
2. Create a Government Gateway ID: If you don’t already have one, you can create it during the application process.
3. Provide Bank Details: Submit details of the UK bank account where bonus payments will be made.
4. Open an Account: Once approved, you can start saving.

Saving and Bonuses

• Monthly Savings: Deposit between £1 and £50 per month.
• Bonus Calculation: Bonuses are based on the highest balance achieved during each bonus period:
  • End of Year 2: 50% of the highest balance.
  • End of Year 4: Another 50% bonus on the highest balance achieved in years 3 and 4.

Example Scenario

If you save £30/month:

• Total Saved Over 2 Years: £720
• Bonus After 2 Years: £360
• Total Saved Over 4 Years: £1,440
• Total Bonus: £720
• Grand Total: £2,160

Why Should You Join the Help to Save Scheme?

The scheme offers more than just a bonus—it helps you develop good financial habits and provides flexibility to adapt to life’s financial challenges. Here’s why it’s a great opportunity:

Benefits of Participation

• Encourage Savings Discipline: Helps you save consistently over time.
• Flexible Contributions: Adjust your savings without penalties.
• Access to Funds: Withdraw funds when needed, though bonuses may be affected.
• Boost Financial Resilience: Create a safety net for unexpected expenses.

Tips to Maximize Your Savings

• Set a Savings Goal: Decide on a monthly amount, even if it’s less than £50.
• Automate Savings: Set up a standing order for effortless deposits.
• Track Your Progress: Use the online portal to monitor balances and bonus calculations.

Additional Financial Support for Universal Credit Claimants

Several other programs complement the Help to Save scheme, providing financial relief for essential needs:

• Healthy Start Scheme: Vouchers for pregnant women and families with young children to buy essentials like milk and vegetables.
• Sure Start Maternity Grant: A one-time payment of £500 for new parents.
• Welfare Assistance Schemes: Local council programs offering help with essential costs like food and utilities.
• Discretionary Housing Payment: Assistance with housing costs not fully covered by Universal Credit.
• Energy Grants: Support for managing energy bills, often available directly through energy providers.

Frequently Asked Questions (FAQs)

1. Who can apply for the Help to Save scheme?

Eligible applicants include individuals receiving Working Tax Credit or Universal Credit with a monthly take-home income of at least £722.45. Eligibility will broaden in April 2025.

2. How much can I save each month?

You can save anywhere between £1 and £50 per month.

3. When will I receive my bonuses?

Bonuses are paid at the end of year 2 and the end of year 4, based on the highest balance achieved during those periods.

4. What happens if I miss a month of savings?

You won’t be penalized for missing a month, but the bonus is calculated based on the highest balance saved.

5. Can I withdraw money from my Help to Save account?

Yes, but withdrawals reduce your balance, which may impact your bonus amount.

6. What changes are coming in April 2025?

From April 2025, all working Universal Credit claimants will qualify for the scheme, removing the current income threshold.

Click here to know more.