⚠️ Heads up for Universal Credit claimants! The DWP has a rule that might affect your payments. If you’ve got savings or investments between £6,000 and £16,000, be prepared for a cut. Here’s how it works:
For every £250 you have over the £6,000 threshold, your payments drop by £4.35. Even if it’s under a full £250, that pesky £4.35 still applies. So, those savings can quickly impact your monthly budget!
Example time: If Sam has £6,300 saved up, she loses £8.70 monthly since she’s £300 over the limit. Meanwhile, Leeroy with £14,500 in savings will see a £147.90 deduction. Ouch!
It’s not just savings that can affect your Universal Credit. Payments could also be reduced if you’re repaying an advance, overpaid benefits, or owe bills and fines. Plus, your claimant commitment lays out rules you must follow, like attending job appointments and accepting work offers. Ignoring these? You might face sanctions and lose significant amounts monthly.
And what about sanctions? They’re no joke! Depending on the situation, they can range from low to high severity, lasting from weeks to months. The reasons for these penalties vary, from missing appointments to declining job offers without a solid reason. In May 2025 alone, about 5.3% of claimants faced sanctions, proving it’s crucial to stick to your claimant commitment.
If you find yourself sanctioned but disputing the decision, don’t fret. You can ask for a mandatory reconsideration—essentially a review—through your UC account, on the phone, or in writing. And if you’re struggling after sanctions, hardship payments could be on the table, offering a reduced amount to help while you get back on track. But remember, these must be repaid.
Stay informed and ensure you’re up to date on your UC responsibilities to avoid any financial surprises! 💷🔍