HM Revenue and Customs is giving a bonus payment worth up to 1,200 to people on Universal Credit, and this is how you can claim yours – but it isn’t as easy as it sounds.
HM Revenue and Customs (HMRC) is handing out bonus payments worth up to £1,200 to Universal Credit claimants – but there’s a catch you should be aware of.
The cash boost forms part of the Government’s Help to Save scheme – a savings account type that enables eligible Universal Credit recipients to earn a 50p bonus for every £1 they put aside over four years.
Account holders can make deposits whenever they wish, though monthly contributions are capped at £50, which would generate a £25 bonus. Therefore, those depositing the maximum £2,400 across the four-year period could pocket a bonus totalling £1,200.
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Savers receive two tax-free bonuses during the four-year timeframe, paid out at the conclusion of years two and four. These payments depend on the amount saved during those periods, with recipients getting 50% of their highest saved balance.
HMRC states: “After your first two years, you’ll get a first bonus if you’ve been using your account to save. This bonus will be 50% of the highest balance you’ve saved. After four years, you’ll get a final bonus if you continue to save. This bonus will be 50% of the difference between two amounts:”.
The Help to Save programme has been prolonged until April 2027, allowing any working Universal Credit recipient to open an account, reports the Express.
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According to HMRC, establishing an account takes under five minutes and can be easily handled through GOV.UK or the HMRC app. HMRC has issued a reminder for individuals to apply for the Help to Save scheme, stating on X (formerly Twitter): “Want to boost your savings? With Help to Save, for every £1 you save, the government adds 50p. That’s up to £1,200 in bonus payments over four years. Check eligibility and apply today via the HMRC app.”
In 2024, nearly 18,500 people opened a Help to Save account using the HMRC app, which allows users to monitor their account, verify their balance and bonus details, and make deposits via debit card, bank transfer or standing order.
Although funds can be withdrawn at any time, this may impact the 50% bonus payments.