The Department for Work and Pensions (DWP) has issued a warning to anyone who claims Universal Credit and has any amount in savings
A stark warning has been issued to millions of Universal Credit recipients who have any amount in savings. It’s common knowledge that if your savings surpass £16,000, you’re not eligible for Universal Credit.
However, the Department for Work and Pensions (DWP) is reminding Universal Credit claimants that this is simply the upper capital limit, and having savings less than this can still affect your benefit amount.
The lower limit for savings on Universal Credit is actually £6,000. For every £250 you have above this, your payment will be reduced by £4.35. This is also rounded up, so if you have £6,400 in savings, a total of £8.70 will be deducted from your payments. In other similar stories, DWP confirms new Winter Fuel Payment deadline with pensioners urged to act now.
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Few people are fully aware of what constitutes savings or capital in the DWP’s calculations. For Universal Credit, it includes cash, any savings accounts, property you own but don’t live in, cryptoassets, inheritance payments and even money that belongs to someone else but is in your name, reports Birmingham Live.
Your personal possessions are not taken into account, though, the DWP guidelines on its website confirms. Some types of money, savings, investments or other assets might not affect your claim for Universal Credit. Nonetheless, you still need to tell us about these so we can decide whether to take them off your overall money, savings and investments.
All money, savings and investments you have in the UK and abroad are taken into account, including cash and money in your bank account, including your main bank account.
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The Department for Work and Pensions (DWP) takes into account a wide range of financial assets. This includes current accounts, digital-only accounts such as PayPal, and various types of savings accounts: bank, building society, credit union, Help to Save, Post Office, and National Savings and Investments (NSandI) accounts.
It also considers savings held in your name for children, money that belongs to someone else but is in your name, savings set aside for essential building work (unless it’s from a grant or loan), and funds saved for medical care. Individual Savings Accounts (ISAs) are also included: cash, stocks and shares, Innovative Finance, Help to Buy, and Lifetime ISAs.
Other financial assets taken into account include Premium Bonds, dividends, stocks and shares, and crypto assets. The DWP also considers property you own but do not live in, property, land and savings held abroad, inheritance payments, business accounts, and assets from businesses that closed over 6 months ago.
Money held in trust funds is also considered, except in certain circumstances. Finally, the DWP takes into account unspent benefits, such as Child Benefit, Personal Independence Payment (PIP), and Disability Living Allowance (DLA), as well as any unspent income.