HMRC to pay £1,200 to Universal Credit claimants with 7.5m eligible
The government scheme is backed by money-saving expert Martin Lewis, who has encouraged people to take part in the risk-free savings program
HM Revenue and Customs has announced that a whopping 7.5 million Brits could be eligible for a £1,200 cash boost. HMRC revealed on X that anyone receiving Universal Credit can take advantage of Help to Save accounts – a scheme where the Government tops up every £1 saved with an additional 50p over a four-year period.
As of August 2025, around 7.5 million people in the UK were claiming Universal Credit, a significant increase from the 6.4 million recorded in January 2024. The Help to Save initiative, endorsed by personal finance guru Martin Lewis, is a special type of savings account.
It offers those on Universal Credit a bonus of 50p for every £1 they squirrel away over four years.
The government-backed Help to Save scheme guarantees the security of all savings within it. According to HMRC, individuals can stash away anything between £1 and £50 each calendar month, without any obligation to contribute every month.
Payments can be made via debit card, standing order or bank transfer. HMRC clarified: “You can pay in as many times as you like, but the most you can pay in each calendar month is £50. For example, if you have saved £50 by 8 January you will not be able to pay in again until 1 February.”
“You can only withdraw money from your Help to Save account to your bank account. You get bonuses at the end of the second and fourth years. They’re based on how much you’ve saved.”
HMRC said: “Your Help to Save account will close 4 years after you open it. You will not be able to reopen it or open another Help to Save account. You’ll be able to keep the money from your account.”
Martin Lewis, the founder of Money Saving Expert, has previously praised the scheme for its risk-free benefits, calling it ‘unbeatable’. On social media platform X, formerly known as Twitter, he recommended: “If you know anyone on Universal Credit especially please do share this with them. It’s an unbeatable form of savings, that can add serious cash with no risk.”
The financial expert has urged people to take advantage of the government’s Help to Save scheme, which provides a 50% bonus on savings. He explained: “So look in help to save. If you’re eligible for it, you can put up to 50 quid a month in over two years, and then at the end you get 50% of the highest amount in.
“So let’s just think of this. You put £50 in a month for a year, you’ve got 600 quid. You have a nightmare because this is all about building financial resilience and getting people to have some savings. You have a nightmare, your fridge is broken.
“You need it for the kids. You spend your 600 quid you can’t afford to put any more in. At the end of the two years, the highest amount you had in was £600. You get 50% of that, which is £300. So you get £300 and then whatever you’ve got in at that point, they do it again for the next two years, comparing what you have at the end with what you’re having at the beginning, and you get a 50% bonus.”
Through this scheme, individuals claiming Working Tax Credit or Universal Credit can choose to save anywhere from £1 to £50 each month, though there’s no obligation to make regular payments.
Savers can top up their accounts via debit card, standing order, or bank transfer and face no restrictions on how frequently they contribute monthly, provided they remain within the £50 ceiling.
The second bonus works out as 50% of the gap between the peak balance achieved in the initial two years and the final two-year period.
Officials explain: “If your highest balance does not increase, you will not earn a final bonus.” By putting away the maximum £50 each calendar month into the account, reaching £2,400 across four years, savers might potentially earn up to £1,200 in bonus payments.
HMRC confirms that bonuses go straight into the saver’s regular bank account, rather than the Help to Save account. To demonstrate how this operates, HMRC offers this scenario: “You pay in £25 every calendar month for 2 years. You do not withdraw any money. Your highest balance will be £600. Your first bonus is £300, which is 50% of £600. In years 3 and 4 you save an extra £200 to grow your highest balance from £600 to £800. Your final bonus is £100, which is 50% of £200. Even though you withdrew some money after your balance was £800, this does not affect your bonus.”
Almost half a million people have seized the opportunity with Help to Save accounts since launching in September 2018, stashing away a whopping £372.5 million in total.
Myrtle Lloyd, HMRC’s Director General for Customer Services, urged more people to get involved: “Hundreds of thousands of people are benefitting from Help to Save. It’s a great way of saving whatever you can and the government will top up your savings by 50%. It’s quick and easy to apply online or via the HMRC app. Just search ‘Help to Save’ on GOV.UK to find out more and apply today.”
Fancy signing up? Simply follow this link for the scheme.
