Millions of DWP Universal Credit claimants have just months to get £1,200 for free

Millions of Universal Credit recipients have been warned to check and check again in case they are up for a £1,200 bonus. They have only a few months left to claim up to £1,200 in free cash through a lesser-known account.

The Help to Save scheme, a government initiative aimed at encouraging those on benefits to save money, offers a 50p bonus for every £1 saved over four years, up to a maximum bonus of £1,200. As the scheme is government-backed, all savings within it are secure. The scheme was initially launched in 2018 and was extended last year until April 2025, meaning households have just seven months left to open one of these accounts.

Myron Jobson, Senior Personal Finance Analyst at interactive investor (ii), told The Sun: "On paper, Help to Save is a great initiative to help instil a culture of savings among the nation's most cash-strapped individuals. But for those who've felt the full force of the cost-of-living squeeze, the priority has been to stay above the breadline. If you are on a low income, the problem is that you have little, if anything, to spare to save at the end of the month. Many people make the mistake of trying to save when they are in debt, and yet the cost of debt for most usually vastly outweighs the gain of saving. For those who can afford it, a 50% savings bonus is too good a carrot to pass up."

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Savers can deposit between £1 and £50 per month into their account and will receive a government bonus even if money has been withdrawn. A 50p bonus is paid for every £1 saved, meaning that someone saving the maximum amount of £50 monthly can receive an extra £25 for free, which adds up to £300 in a year.

It means that someone saving £2,400 - the maximum amount they could deposit over four years - would receive a £1,200 bonus from the government. While the scheme could still be extended past April, it's worth bearing in mind that if you're only just signing up though, you won't get the headline amount.

Myron also pointed out that the bonuses are paid after the first two years and again at the end of the four years. He said: "Remember, the bonuses are paid after the first two years and again at the end of the four-year period."

"As such, the first bonus of £175 would be paid two years from the account opening date, which would be in October two years later."

So this means if you open an account before the end of the month you'll get £175 in government bonuses - but this won't be paid until October 2026 so do bear that in mind.