💷 Attention Universal Credit recipients! Wondering how much you can have in savings before it affects your benefits? Here’s the scoop: 👀
The Department for Work and Pensions (DWP) states that to qualify for Universal Credit, your savings and investments should usually cap at £16,000. If you’ve got savings between £6,000 and £16,000, be prepared for reductions in your benefit payments.
Here’s how it works:
– For every £250 over £6,000, your monthly payment is reduced by £4.35.
– So, if you have £6,500 saved, £6,000 is ignored, but the extra £500 will reduce your payment by £8.70.
Liz Kendall, the Work and Pensions Secretary, is implementing new measures to make sure the system is fair for everyone and to prevent anyone from gaming it. This includes checks for those with significant savings to ensure transparency and fairness for law-abiding taxpayers.
If you’re also claiming Job Seekers Allowance or income-related ESA, expect a £1 weekly deduction for every £250 over £6,000. These rules also apply to income support and housing benefit recipients.
Stay informed and plan wisely! Got questions? The Universal Credit helpline is here to help at 0800 328 5644. 📞
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