Households across the UK receiving Universal Credit can get a bonus payment of up to £1,200 from HM Revenue and Customs (HMRC) through a savings scheme.
The bonus comes as part of HMRC’s Help to Save scheme which is a type of savings account available to certain people on Universal Credit. Those who open an account will receive a bonus of 50p for every £1 they save over a period of four years. You can pay into their account as many times as you like, but the most you can pay in each month is £50 which would earn you a £25 bonus.
If you deposit the maximum amount every month over four years, then you’ll amass savings of £2,400 and will earn £1,200 in bonus money from HMRC as a reward.
You can receive two tax-free bonuses over a four year period and these are paid at the end of the second and fourth years. These are based on how much money you’ve put away within these periods, so you’ll get 50% of the highest balance you’ve saved.
HMRC explains: “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 highest balance saved in the first two years (years 1 and 2)
- the highest balance saved in the last two years (years 3 and 4)
“If your highest balance does not increase, you will not earn a final bonus. The most you can pay into your account each calendar month is £50, which is £2,400 over four years. The most you can earn from your savings in four years is £1,200 in bonus money. Your bonus is paid into your bank account, not your Help to Save account.”
The Help to Save scheme has been extended to April 2027 to allow anyone working and receiving Universal Credit to open an account.
HMRC says it takes less than five minutes to set up an account and this can be easily managed via GOV.UK or the HMRC app.
Almost 18,500 people opened a Help to Save account via the HMRC app in 2024, which allows users to view their account, check their balance and bonus details, and make a deposit via debit card, bank transfer or standing order.
Money can be withdrawn at any time, although this may affect the 50% bonus payments. When you receive your bonus, this will be paid into your bank account, not your Help to Save account.
