Universal Credit claimants across the UK are set to receive a financial boost from the Department for Work and Pensions (DWP). This £1,200 payment is part of a wider government initiative designed to assist individuals who are working while claiming Universal Credit. The scheme, which has gained attention in various regions, is intended to support those facing financial challenges.
According to Birmingham Mail, thousands of people have already started receiving the boost. But how exactly does the scheme work, and what are the specific eligibility requirements for claimants looking to benefit from this financial support?
How Do You Qualify for the Universal Credit £1,200 Boost?
This financial assistance is available to all working Universal Credit claimants. To be eligible, you or your partner (if it’s a joint claim) must have earned at least £1 in take-home pay during your last monthly assessment period. It’s designed to support people in low-income jobs, helping them manage living costs, pay rent, or even contribute towards care costs for children with disabilities.
Interestingly, a substantial percentage of Universal Credit claimants are also employed. National statistics show that 34% of people receiving Universal Credit are in work, many relying on the benefit to supplement their wages. In Birmingham, that figure stands at around 27%, meaning a significant portion of claimants here can also access this much-needed boost.
What Is the Help to Save Scheme?
The £1,200 Universal Credit boost is linked to the “Help to Save” scheme, a savings initiative designed to help claimants build up their savings over time. The scheme is a great way for people to get extra support for the future, with the government offering a 50p bonus for every £1 saved. Over a four-year period, you can contribute up to £50 per month, totalling £2,400 in savings. The bonus, however, is capped at £1,200.
Since the scheme’s launch in September 2018, it has become quite popular. By April 2025, more than 575,000 people had signed up, collectively depositing a total of £588.2 million into their accounts. The scheme’s bonus payments have reached £220 million. In the West Midlands, nearly 55,000 individuals have opened accounts, depositing around £55 million.
But here’s the twist – while the savings you put into the account count towards your Universal Credit capital limit, the bonus payments you receive do not. This is crucial because Universal Credit entitlement starts to decrease once your savings exceed £6,000, and completely stops at £16,000. So, while the bonus helps your savings grow, it won’t impact your eligibility for benefits.
The Impact and Future of Help to Save
The Help to Save scheme was originally set to end in September 2023 but has now been extended until April 2027, allowing even more people to benefit. The programme has recently expanded to include all working Universal Credit claimants, which made an additional 550,000 people eligible for the first time. In April 2025, for example, 7,800 accounts were opened when the programme was extended.
Previously, eligibility for Help to Save required claimants to be recipients of Tax Credits or Universal Credit and to work at least 16 hours a week at the National Living Wage. However, as part of the government’s ‘managed migration’ programme, which is replacing six legacy benefits with Universal Credit, Tax Credits were abolished in April 2025.
