How savings affect an award

TIP: If you have savings/capital of £16,000 or more then you will not be entitled to Universal Credit* – and if you make a claim, any Tax Credits you have been receiving will stop and you may not be able to get back on them!

*Unless you are in receipt of Tax Credits and claiming Universal Credit because you have received a managed migration notice.


If you have more than £6,000 of savings/capital it will reduce your Universal Credit payment. The DWP will take off £4.35 a month for each £250 (or part of £250) of savings/capital above £6,000.

You’ll no longer be eligible for Universal Credit if you have £16,000 or more in capital.

Capital includes things like savings, interest, certain property (that you don’t live in) and shares.

Yvonne has £6,720 in savings. This is £720 over £6,000 – which is 2 full lots of £250 and one partial £250. This means that her savings reduce her Universal Credit by 3 x £4.35 = £13.05 a month