Universal Credit claimants in line for £1,200 savings windfall thanks to HMRC initiative

Universal Credit claimants could be in line for a £1,200 windfall thanks to the expansion of a popular Government initiative, which encourages Britons to save.HM Revenue and Customs (HMRC) has announced the extension of the Help to Save scheme that could benefit half a million more people across the country.Under new rules, Universal Credit claimants earning just £1 from work can now open an account and potentially receive bonuses of up to £1,200.This marks a significant change to the eligibility criteria, which previously required a much higher income threshold for Britons to qualify.The scheme aims to encourage saving among working families on tight budgets, providing a substantial 50 per cent return on savings.According to HMRC figures, thousands of customers have already benefited from the programme, with many more now eligible to participate.Previously, Universal Credit claimants needed to earn at least £722.45 in their last monthly assessment period to qualify for the scheme.Now, anyone claiming Universal Credit who earns just £1 from work can open a Help to Save account.Do you have a money story you’d like to share? Get in touch by emailing money@gbnews.uk.This structure allows people to build up savings for emergencies while still being rewarded for their initial saving efforts.The bonus is calculated based on the highest amount saved rather than the final balance, creating flexibility for savers who may need to withdraw funds.Economic Secretary Emma Reynolds said: "Security for working people is at the heart of our Plan for Change."We want more people to have a bit in the kitty for a rainy day, which is why we are giving hundreds of thousands more working families on tight budgets access to this support."Myrtle Lloyd, HMRC's Director General for Customer Services, added: "Thousands of customers have already benefitted from Help to Save and many more are now eligible to get a great return of 50 per cent on top of their savings, no matter how little you can save each month."She encouraged people to "Go online or via the HMRC app to find out more and apply today."LATEST DEVELOPMENTS:State pension payment delay for millions as retirement age hike loomsNine million state pensioners MISS OUT on £470 boost while others get DOUBLE - Are you impacted?DWP urged to take action as Brits have 'concerning gap in awareness' over state pension ageMichelle Highman, Chief Executive of The Money Charity, welcomed the expansion: "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."Financial expert Martin Lewis described it as "a very clever scheme" that works well for many people.He explained: "The fact that you're given the bonus based on the highest amount you've saved, rather than the amount that you actually have in there, means you can build up your savings until you have an emergency."