The Department for Work and Pensions (DWP) has announced the continuation of the £1,200 Universal Credit bonus scheme in 2025, aimed at supporting low-income workers and helping them build savings. Many claimants are unaware that they could be eligible for this bonus, which is provided under the Help to Save scheme. With the cost of living still weighing heavily on households, this extra boost can make a real difference.
What Is the £1,200 Universal Credit Bonus?
The £1,200 bonus is part of the Help to Save government savings scheme. Eligible Universal Credit and Working Tax Credit claimants can save money monthly, and the government will add a 50% bonus to their savings – worth up to £1,200 over four years.
Eligible Criteria
You may qualify if you meet these conditions:
- You are receiving Universal Credit and earned at least £658.64 from work in your last monthly assessment period.
- Or you are receiving Working Tax Credit.
- You live in the UK (exceptions apply for Crown employees and armed forces posted abroad).
Overview Table
Here’s how the savings and bonus scheme works:
| Savings Period | Maximum You Can Save | Government Bonus (50%) | Total You Receive |
|---|---|---|---|
| 1st 2 years | Up to £1,200 | Up to £600 | £1,800 |
| Next 2 years | Up to £1,200 | Up to £600 | £1,800 |
| Total (4 years) | £2,400 | £1,200 | £3,600 |
When Will Payments Be Made?
- Bonuses are paid after each 2-year savings period.
- The first bonus is based on the highest balance saved during the first 2 years.
- The second bonus is based on how much you’ve added to your savings in the following 2 years.
- Payments are made directly into your bank account by HMRC.
Key Updates for 2025
- The scheme continues to be available throughout 2025 for eligible Universal Credit and Working Tax Credit claimants.
- Claimants can open an account online via the official Help to Save portal.
- Flexibility is included – you can save between £1 and £50 per month, and withdraw funds if needed.
Conclusion
The DWP £1,200 Universal Credit Bonus 2025 is a golden opportunity for eligible claimants to grow their savings with government support. By saving regularly, low-income households can secure extra financial backing and build long-term security.
Frequently Asked Questions(FAQs)
Q1: Who can get the £1,200 Universal Credit bonus in 2025?
Answer=Anyone on Universal Credit (meeting the income threshold) or Working Tax Credit may qualify.
Q2: How is the £1,200 bonus paid?
Answer= It’s paid in two instalments over four years directly into your bank account.
Q3: Do I have to save the maximum amount to earn the bonus?
Answer= No, you can save as little as £1 a month – the bonus is calculated based on your savings.