I followed Martin Lewis tip and got £1,200 free cash bonus while on Universal Credit

Scottish Sun

07-05-2025

A UNIVERSAL Credit claimant has revealed how a simple savings hack helped her pocket a £1,200 free bonus cash.
Claire spotted a savings tip on TV and four years later, she's sitting on a £1,200 bonus thanks to one simple move recommended by Martin Lewis.
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A woman bagged £1,200 of free cash following Martin Lewis' key tip
The savvy saver, who was on Universal Credit when she opened her Help to Save account, has now officially cashed out after diligently putting money away each month and she's urging others not to miss out.
She shared her story with Martin Lewis' Money Saving Expert team, saying: 'I've saved for the last 4 years... I'm about to cash out my last £2,400 plus my second £600 bonus, so £3,600 in total.
"It was tight some months, but I always pulled the cash together to get the max back! Thanks for the tip all those years ago!'
Claire's bonus came from the Help to Save scheme, which is a Government-backed savings account that rewards low-income earners with 50p for every £1 they put away.
It's designed for those on Universal Credit or tax credits, and it's been described by Martin as 'totally unbeatable'.
The account allows users to save between £1 and £50 per month over four years.
After two years, savers get a 50% bonus on the highest balance they held, even if they dipped into it.
Then, if they carry on saving for another two years, they get another 50% bonus based on what they added in years 3 and 4.
Just by saving £50 a month, she unlocked the full £1,200 in free Government money.
Now, anyone on Universal Credit who earned at least £1 in the last month can open an account.
Skipton free ISA buns
Previously, only those earning £793.17 or more in take-home pay per month could apply, but from April 6, the threshold was lowered dramatically.
That's an extra 550,000 people now eligible, bringing the total pool to 2.7million.
Once you open an account, you can save anything from £1 to £50 a month.
After two years, you get a tax-free bonus equal to 50% of the highest amount you had in the account, even if you withdrew it.
Then, you can continue saving for another two years and earn a second bonus calculated on the increase in your balance.
That means over four years, savers could walk away with £1,200 in free Government cash on top of the money they've set aside.
The Money Saving Expert explained: 'Even if you only save a few pounds a month, the rewards are unmatched. It's rare I use the word 'unbeatable' but this truly is.'
Better yet, the account is easy-access, meaning you can withdraw money whenever you need to which is a lifeline for many juggling tight budgets.
However, there is a caveat.
If your total savings, including Help to Save , exceed £6,000, it could reduce your Universal Credit payments.
But for most savers who stick to the scheme alone, this won't be a problem.
Also, the bonus itself isn't counted towards the threshold, only what you've physically deposited.
There's one situation where Help to Save might not be the best option and that's if you're carrying expensive debt.
In that case, it could be wiser to pay down what you owe before building up savings.
But for everyone else, it's a financial no-brainer.
And the perks of being on Universal Credit don't stop there.
Claimants can also get up to 85% of childcare costs covered, access Sure Start Maternity Grants worth £500, and apply for support from the £421million Household Support Fund via their local council.
You can cash in on £29,000 worth of free cash and benefits.
If you're unsure whether you're eligible for Universal Credit or Help to Save, you can check using GOV.UK's tools.
In a cost-of-living crisis, this could be the most rewarding £1 you ever.