DWP Extends £1,200 Savings Boost. DWP Booster Increase to 12 weeks. Millions of UK citizens are already getting their Universal Credit, and many of them might not know that they can also qualify to get a special add-on payment of up to £1,200.
The Help to Save is a scheme that has been created by the government that aims to promote savings, so those who live on low incomes get a nice bonus to encourage regular savings, which would not interfere with the benefits.
This project has been going on since 2018, but recently, it has acquired new popularity and is available to more people. The scheme has now been widened in terms of eligibility and extended until April 2027, which should give claimants the perfect opportunity to improve their financial strength.
Overview of £1,200 Savings Boost by DWP
| Category | Details |
| Article | £1,200 Bonus by DWP |
| Type | Government savings scheme (Help to Save) |
| Country | United Kingdom |
| Scheme | Help to Save – 50% bonus on savings |
| Department | Department for Work and Pensions (DWP) & HMRC |
| Duration | Extended until April 2027 |
| Bonus | Up to £1,200 over four years |
| Application | gov.uk or HMRC app |
How the Scheme Works
Help to Save allows eligible individuals to save between £1 and £50 each month over four years. What makes it particularly attractive is the bonus: for every £1 saved, the government adds 50p. This means that if you save the full £50 every month, you could build up £1,200 in savings within two years and receive an additional £600 bonus.
At the four-year mark, if you continue saving at the maximum level, you’ll receive another £600, bringing the total bonus to £1,200. Combined with your contributions, you would walk away with £3,600 at the end of the scheme.
The bonus is calculated on the highest balance in your account during each two-period period. This flexibility allows savers to withdraw funds if necessary, though doing so could reduce the eventual bonus.
Expanded Eligibility
Until recently, the rules required participants to earn the equivalent of 16 hours per week at the National Living Wage to qualify. However, as of early 2025, the threshold has been lowered significantly. Now, if you earn just £1 in a Universal Credit assessment period, you may be eligible.
This change has opened the door to an additional 550,000 claimants, meaning nearly 3 million people are now entitled to join. For many working households on low incomes, this provides a chance to save without jeopardising benefit payments.
Couples who both receive Universal Credit can each apply for their Help to Save account, potentially doubling the household benefit.
Easy Application Process
Setting up a Help to Save account is quick and free. Applications can be completed online through GOV.UK or via the HMRC app. All that’s required is your National Insurance number, postcode, and bank details.
Once open, the account is straightforward to manage. You can make deposits by debit card, bank transfer, or standing order, and you do not need to begin saving immediately. This flexibility means you can open an account while you are eligible, even if you are not yet ready to start saving.
Why Take-Up Has Been Low
Despite the clear benefits, take-up of the scheme has been lower than expected. Since its launch, just 500,000 accounts have been opened, far short of the millions eligible. Some of this may be due to a lack of awareness, while others may feel unable to commit to saving regularly, given current financial pressures.
However, the evidence from those who have joined is positive. Around 93% of account holders who participate deposit the full £50 every month, suggesting that once people get started, they find the scheme worthwhile.
The Benefits of Participation
The Help to Save scheme offers a rare chance to build savings with government support. For those on low incomes, creating a financial buffer can provide much-needed security in case of unexpected costs. Unlike other savings schemes, it does not reduce Universal Credit or Tax Credit payments, making it risk-free.
Even small amounts can make a difference. Saving just £10 a month would still result in a £60 bonus after two years, and £120 after four. The scheme is designed to encourage positive saving habits, regardless of income level.
Looking Ahead
The extension of Help to Save until April 2027 gives claimants plenty of time to apply. However, accounts can only be held for four years, and once closed, they cannot be reopened. This makes it important to consider applying sooner rather than later.
For those eligible, the scheme is an invaluable tool to build resilience, prepare for the future, and unlock a potentially life-changing £1,200 bonus. With applications taking only a few minutes, it may be one of the most beneficial financial decisions Universal Credit recipients can make today.
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Help to Save is a simple, risk-free scheme offering a 50% bonus on savings for eligible Universal Credit claimants. With wider eligibility rules and an extension to 2027, it’s an opportunity not to be missed.
FAQs for £1,200 Savings Boost by DWP
If you are on Universal Credit and had take-home pay of at least £1 in your last monthly assessment period, you can apply. Couples on joint claims can both apply separately.
You can save between £1 and £50 per month. There’s no obligation to save every month, and you can choose how much to deposit within that limit.
You’ll get a 50% bonus based on the highest balance saved in your account. For example, if you save £50 every month for two years (£1,200 total), you’ll receive £600 as a bonus. After four years, you could get another £600, making £1,200 in total.
No. The money you save and the bonus you receive will not reduce your Universal Credit or Tax Credits.