HMRC gives £300 a year bonus to people on DWP benefit

People claiming Universal Credit from the Department for Work and Pensions (DWP) can bag a huge cash bonus as part of a government savings scheme.

(HMRC) has announced that more than half a million savers in the UK are in line for bonuses worth up to £25 per month to boost their cash pots with its . Help to Save is a type of savings account that allows people on to get a bonus of 50p for every £1 they save over four years. Savers can pay into their account as many times as they choose, but the most they can pay in per month is £50.

Those who deposit the maximum amount of £2,400 over four years will then bag a bonus totalling £1,200 into their bank accounts, with payments coming at the end of the second and final year. The bonus payment applies to the highest amount saved within those periods.

Help to Save accounts can only be used for four years (after which they will close and you wont be able to reopen another account), so if you save the maximum amount over this period you'll get the £1,200 bonus, which amounts to £300 per year.

HMRC says more than half a million people are in line to benefit from the scheme, which has been extended to allow anyone working and receiving Universal Credit to open an account.

The extension of the scheme to April 2027 means that more people can make the most of the government top-up, with those who pay in £50 per month getting a £25 bonus.

Myrtle Lloyd, HMRC's Director General for Customer Services, said: "Thousands of customers have already benefitted from Help to Save and many more are now eligible to get a great return of 50% on top of their savings, no matter how little you can save each month. Go online or via the HMRC app to find out more and apply today."

HMRC says it takes less than five minutes to set up an account and this can be easily managed via or the .

Almost 18,500 people opened a Help to Save account via the HMRC app in 2024, which allows users to view their account, check their balance and bonus details, and make a deposit via debit card, bank transfer or standing order. Money can be withdrawn at any time, although this may affect the 50% bonus payments.

Michelle Highman, Chief Executive of The Money Charity, added: "We are really pleased to see the Help to Save scheme extended and made available to more people. It's a brilliant way for people to start to save and to build their financial resilience and futures.

"Saving even just a little each month will help, and the added 50% bonus payment from the government means that if you are eligible, then it's a great place to boost your savings."