DWP Confirms £1,200 Bonus for Universal Credit Claimants – Find Out Who Qualifies and When You’ll Get Paid!

Millions of Universal Credit recipients in the UK received a big and relieving news by the government. As the Department of Work and Pensions (DWP) has clarified, a portion of the recipients of Universal Credit are to receive payment benefits up to the amount of 1 200 in the form of a bonus. The program will assist low-income earners and lowly financially-endowed people since the current cost of living is skyrocketing.

In this article, we will come to understand in detail what exactly this bonus plan is, who will be entited to this bonus scheme, when and how this money will be paid and in what situations this relief is being offered. And, in case you receive your support under the Universal Credit too, this information will be of great importance to you.

What is the £1,200 bonus scheme?

This is an incentive under government scheme called Help to Save. It is a special scheme launched by the government to help those on Universal Credit or those already on Working Tax Credit. The primary goal of this scheme is to help in promoting savings among people, thus they can become financially independent in future.

In this scheme, when an individual is making some savings in every month, the government rewards him/her on the saving. The individuals in this plan are allowed to save as much as possibly 50 per month and must have saved over four years. The government offers an upper limit of 1,200 as a bonus to this person at the end of this time frame.

Eligibility Criteria – Who will be eligible for this bonus?

Following are some of the key eligibility conditions set by the DWP:

1. Must be receiving Universal Credit or Working Tax Credit – The individual is required to receive either of these benefits to participate in this scheme.
2. Must be eligible for at least one year – If you have been receiving eligible benefits for at least 12 months, you will get the opportunity to join this scheme.
3. Must have the ability to save – To participate in the scheme, you have to save regularly. You can save from £1 to £50 every month.
4. Must be resident in the UK – The scheme is only for residents of the United Kingdom.

How ​​and when will you get the bonus?

The bonus is paid in two stages:

• First Bonus: When you make regular savings for the first two years, you get 50% of the savings of that period as a bonus. If you have saved £1,200 during this period, you will get a bonus of £600.
• Second Bonus: You get a bonus of 50% again when you save again for the next two years. Thus, if you have saved £2,400 in a total of four years, you will get a total bonus of £1,200 from the government.

Keep in mind that you do not need to save continuously, that is, if you are unable to save in any month, it will not affect your eligibility. But the more you save, the more bonus you will get.

How ​​to avail this scheme?

To be able to access this scheme, you will be required to make an account on the HMRC website in the form of a “Help to Save. To do this will require a Government Gateway user id. After the establishment of the accounts, one can then deposit money on a monthly basis as it fits them.

The largest benefit of this scheme is that it is a scheme where savings are not lost. The money you have saved will be at your disposal at any moment; you still will have a bonus provided that you have saved it within a certain period.

Why was this scheme needed?

The existing economy in the Britain where the inflation is increasing, the energy bills are going up and the cost of living has been rising continuously; all these are weakening individuals who are already forced to live on low incomes. The government with this scheme hopes to provide such people with a chance to become self reliant and make financial preparations towards the future.

The so-called “Help to Save” scheme is not only a bonus scheme, but it is a good step towards the facilitation of financial awareness and financial planning.

Is this scheme open to all Universal Credit beneficiaries?

No, this program is only available to Universal Credit recipients who are in work condition and make less than a specific amount. They must also qualify for additional benefits, like the Working Tax Credit. Therefore, you are not automatically eligible for this program even if you are taking Universal Credit.

To verify your eligibility, use the eligibility check tool on the DWP or HMRC website.

Conclusion: Take advantage of the scheme and become financially strong

The government’s “Help to Save” program, which offers a bonus of up to £1,200, is a fantastic opportunity. It was created with those who are having financial difficulties in mind but still want to save money in mind. This program offers them financial support in the form of bonuses in addition to encouraging them to save.

Open a “Help to Save” account right away if you or any family members are receiving Universal Credit or Working Tax Credit in order to benefit as much as possible from this government program.

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