CORONAVIRUS: 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!
If you have more than £6,000 of 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 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 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