People on two DWP benefits to be handed free £1,200 after Budget

People on two DWP benefits getting free £1,200 after Labour expands scheme

by · Birmingham Live

People on Department for Work and Pensions (DWP) benefits hav been handed £1,200 as the Help to Save scheme is extended by the new Labour Party government in Chancellor Rachel Reeves' Budget. The government confirmed in its Budget documents, released today, that it will extend its Help to Save scheme by two years until April 2027.

Help to Save is a type of savings account. It allows certain people entitled to Working Tax Credit or receiving Universal Credit to get a bonus of 50p for every £1 they save over 4 years. You can save between £1 and £50 each calendar month. You do not have to pay money in every month.

You can pay money into your Help to Save account by debit card, standing order or bank transfer. 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.

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You can only withdraw money from your Help to Save account to your bank account. 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.

You can close your account at any time. If you close your account early you’ll miss your next bonus and you will not be able to open another one. Martin Lewis, founder of Money Saving Expert, previously praised the scheme, saying: "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 with no risk." The Budget documents today said: "The government will extend the current Help to Save scheme until 5 April 2027. With effect from 6 April 2025, eligibility will be extended to all Universal Credit claimants who are in work.

"A delivery consultation, including details of a reformed and improved scheme, has been published alongside the Budget."