How much savings can i have on universal credit

December 2023

How Much Savings Can I Have On Universal Credit In December 2023

Universal Credit is a means-tested benefit designed to provide financial assistance to low-income and unemployed individuals in the United Kingdom.

It replaces six benefits with a single monthly payment and is intended to assist individuals in meeting their financial obligations.

This blog post will discuss the Universal Credit savings limit and the rules that apply to your savings.

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Explanation of Universal Credit

Universal Credit is a government benefit that provides financial aid to low-income and unemployed individuals. Income Support, Income-based Jobseeker’s Allowance, Income-related Employment and Support Allowance, Housing Benefit, Child Tax Credit, and Working Tax Credit are replaced by a single monthly payment.

Universal Credit aims to simplify the benefits system and encourage employment. It is available to employees and unemployed individuals, and the amount you receive depends on your income and circumstances.

Payments for Universal Credit are made monthly in arrears, and you can choose to receive them in either your bank account or a Post Office card account.

Importance of Savings

Saving money is integral to financial management and can help you reach your objectives. Whether for a rainy day, a new car, or a holiday, having some money aside can provide peace of mind and help you manage unexpected expenses.

Having savings can be advantageous if you are applying for Universal Credit. Without relying on credit cards or loans, it can help you pay for unexpected expenses, such as a broken boiler or a car repair. 

It can also be a buffer if your income fluctuates, such as transitioning from part-time to full-time employment.

Rules for Saving on Universal Credit

Some rules apply to your savings if you are claiming Universal Credit. The amount of protection you can accumulate depends on your circumstances, such as your marital status and whether or not you have children.

For instance, if you are under 25 and unmarried, you can have up to £6,000 in savings without affecting your Universal Credit payments. If you are over 25, you can save up to £16,000. If you have a partner, your savings potential is increased.

Maximum Amount of Savings Allowed

£16,000 is the maximum savings you can have and still qualify for Universal Credit. You will not be eligible for Universal Credit if this amount is exceeded. However, your Universal Credit payment will be reduced if you have savings between £6,000 and £16,000.

How Savings Affect Benefits

When calculating your Universal Credit payment, your savings will be considered if you have any. The amount of savings you have will impact the monthly amount of Universal Credit you receive.

If you have more than £6,000 but less than £16,000 in savings, your Universal Credit payment will be reduced by £4.35 per £250 in savings. For example, if you have £7,000 in savings, your monthly Universal Credit payment will be reduced by £17.40.

If you have more than £16,000 in savings, you will not qualify for Universal Credit.

Calculation of Benefit Reduction

If you have between £6,000 and £16,000 in savings, your Universal Credit payment will be reduced by £4.35 per £250 of savings. For example, if you have £10,000 in savings, your monthly Universal Credit payment will be reduced by £52.20.

Pension Credit

Pension Credit is a means-tested benefit providing financial assistance to State Pension-eligible low-income individuals. It is designed to assist pensioners with meagre or no savings who need help to make ends meet.

Housing Benefit

The Housing Benefit is a means-tested benefit that provides financial support to low-income renters. The amount you receive is dependent on your income and other circumstances.

Council Tax Support

Council Tax Support is a means-tested benefit that provides financial aid to low-income individuals with difficulty paying their council tax bill. Your income and situation determine the amount you receive.

Tax Credits

Tax credits are means-tested benefits designed to assist low-income families and individuals. The amount of assistance you receive is based on your income and living situation.

Calculating Income and Expenses

Your income and expenses will be considered when determining the amount of your Universal Credit payment. This includes your monthly income, which includes money from your job, benefits, and other sources.

Monthly Income

Your monthly income is the total money you receive from your salary, benefits, or any other source. It is essential to notify the Universal Credit office of any changes to your income as soon as possible, as this can affect the amount of Universal Credit you receive.

Can Universal Credit check my savings?

Universal Credit can verify your savings, yes. When submitting a claim for Universal Credit, you must provide details about your savings and other forms of unearned income. Universal Credit will then review this data to determine your eligibility and the amount of Universal Credit you are eligible to receive.

Can I claim Universal Credit if I have £15,000 in savings?

If you have between £6,000 and £16,000 in savings, your Universal Credit payment will be decreased. The reduction amount will depend on the amount of savings you have. If your savings exceed £16,000, you will not be eligible for Universal Credit.

Do Universal Credit need to see bank statements?

When applying for Universal Credit, you must provide bank statements and other financial information. This allows Universal Credit to determine your eligibility and the amount of Universal Credit you are eligible to receive.

Can Universal Credit claimants have a savings account?

Yes, Universal Credit recipients are permitted to have a savings account. Nevertheless, the amount of your savings will impact your Universal Credit payment. If your savings exceed £16,000, you will not be eligible for Universal Credit.

savings on universal credit

Personal Independence Payment

Personal Independence Payment is a non-means-tested benefit that provides financial assistance to individuals with a disability or health condition. It is designed to assist individuals with the additional costs associated with a health condition or disability.

Claiming Universal Credit

To apply for Universal Credit, you must create an online account and provide details about your income, savings, and housing expenses. You may also be required to attend an interview at the Jobcentre Plus in your area.

Limited Capability for Work

You may be eligible for Limited Capability for Work if you have a health condition or disability that affects your ability to work. This is an additional payment that can be received in addition to Universal Credit.

Universal Credit Payment

Your monthly Universal Credit payment will include all elements you are entitled to, such as the standard allowance, housing costs element, and any additional benefits.

"Universal Credit is a means-tested benefit designed to provide financial assistance to low-income and unemployed individuals in the United Kingdom."

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Income Related Employment and Support Allowance

The Income-Related Employment and Support Allowance is a means-tested benefit that provides financial assistance to individuals who can’t work due to a health condition or disability. It is designed to assist unemployed individuals with little or no savings.

Monthly Universal Credit Payment

Your monthly Universal Credit payment will determine your income, savings, and housing expenses. You can view and track your Universal Credit payment online through your Universal Credit account.

Savings Account

You may have a savings account if you are receiving Universal Credit, but the amount of your savings will affect your Universal Credit payment. If you have more than £16,000 in savings, you will not qualify for Universal Credit.

Rules for Saving on Universal Credit

Disability Living Allowance

Disability Living Allowance is a non-means-tested benefit that provides financial assistance to individuals with a disability or health condition. It is designed to assist individuals with the additional costs associated with a health condition or disability.

Child Disability Payment

The Child Disability Payment is a non-means-tested benefit that offers financial assistance to families with a disabled child. It is intended to assist families with the additional costs of caring for a disabled child.

Means-Tested Benefits

Benefits that are based on your income and savings are means-tested. It may impact your eligibility for means-tested benefits, such as Universal Credit, if you have savings or other unearned income.

Housing Costs

If you rent and receive Universal Credit, you may be eligible for assistance with your housing costs. The housing assistance you can receive depends on your home’s size and location.

Housing Costs Element

The Housing Costs Element of Universal Credit is intended to assist individuals with rent payments. It can cover your rent, and the amount you receive is based on your situation.

Support Allowance

Support Allowance is a means-tested benefit that provides financial assistance to individuals unable to work due to a health condition or disability. It is designed to assist unemployed individuals with little or no savings.

Benefit Cap

The Benefit Cap limits how much you can receive in benefits. If eligible for Universal Credit and other benefits, the total benefits can’t exceed the Benefit Cap if eligible for Universal Credit and other benefits.

National Capital

National Capital refers to the amount of money you would obtain if you sold your assets, such as real estate or investments. It determines your eligibility for means-tested benefits, such as Universal Credit.

Income Related Employment

Income Related Employment is a means-tested benefit that provides financial assistance to individuals unable to work due to a disability or health condition. It is designed to assist unemployed individuals with little or no savings.

Joint Claim

You can submit a joint claim for Universal Credit if you and your partner are both eligible. This means that you and your partner will receive a single monthly payment.

How Savings Affect Benefits

Universal Credit Amount

Your income, savings, and housing expenses on the GOV determine the amount of Universal Credit you receive.UK website, you can use the Universal Credit calculator to estimate how much you may be eligible for.

Income-Based Jobseeker’s Allowance

Income-Based The Jobseeker’s Allowance is a means-tested benefit that provides financial assistance to job-seekers. It is intended to help unemployed individuals with limited resources.

Less Universal Credit

Your Universal Credit payment may be reduced if you have other income or savings. The amount of the reduction will be determined by your circumstances, such as your income and savings.

Income Support

Income Support is a means-tested benefit that provides financial aid to low-income, unemployed individuals. It is designed to assist unemployed individuals with little or no savings.

Assessment Period

Your Universal Credit payment is evaluated over one month, known as an assessment period. Your assessment period begins on the date you file for Universal Credit and ends each month on the same date.

Single Person

If you claim Universal Credit as a single person, you will receive a lower standard allowance than couples. This is due to the assumption that couples can share living expenses.

Severely Disabled Person

If you are severely disabled and claiming Universal Credit, you may be eligible for an additional payment known as the Severe Disability Premium. This is an additional payment made in addition to your Universal Credit payment.

New Style Jobseeker’s Allowance

New style Jobseeker’s Allowance is a non-means-tested benefit that provides financial assistance to job-seekers. It is intended to assist unemployed individuals who have paid sufficient National Insurance contributions.

Dependent Child

If you claim Universal Credit and have a child in your care, you may be eligible for an additional payment known as the Child Element. This amount is paid in addition to your Universal Credit payment to assist with child-rearing expenses.

Limited Capability

If your health condition or disability affects your ability to work, you may be eligible for the Limited Capability for Work Element. This is an additional payment made in addition to your Universal Credit payment.

Maximum Amount

The maximum amount of Universal Credit you can receive is determined by your income, savings, and housing expenses on the GOV determine the total amount of Universal Youro estimate the maximum amount you may be entitled to.

Online Account

You must create an online account to manage your Universal Credit claim. You can track your Universal Credit payment, report any changes to your circumstances, and manage your account details through your online account.

Extra Money

If you have a medical condition or a disability, you may be eligible for the Additional Elements. This is an additional amount paid on top of your Universal Credit payment to help cover other expenses related to your illness or disability.

Incapacity Benefit

Incapacity Benefit is a means-tested benefit that provides financial assistance to people who can’t work due to a disability or health condition. It is designed to assist unemployed individuals with little or no savings.

How Many Children

The amount of Universal Credit you receive is affected by the number of children you have. You will only receive additional Child Elements if you have up to two children.

Health Condition

If you have a health condition or a disability, you may be eligible for additional payments to help cover the other expenses related to your situation. These extra payments are referred to as Additional Elements and are made in addition to your Universal Credit payment.

War Disablement Pension

The War Disablement Pension is a non-means-tested benefit that provides financial assistance to individuals who were injured or rendered disabled as a result of military service. It is intended to assist disabled veterans with their additional living expenses.

Attendance Allowance

Attendance Allowance is a non-means-tested benefit that provides financial assistance to people who require regular care or supervision due to a health condition or disability. It is designed to assist individuals with the additional costs associated with a health condition or disability.

Living Costs

Universal Credit is intended to assist with essentials such as food, clothing, and shelter. Your income, savings, and housing expenses will determine your Universal Credit payment amount.

Entitled to Universal Credit

To be eligible for Universal Credit, you must meet specific eligibility requirements, such as having a low income, being unemployed, or suffering from a health condition or disability that hinders your ability to work on the GOV.UK website, you can check your eligibility for Universal Credit.

Meet the author

Jane Parkinson

Jane Parkinson

Jane is one of our primary content writers and specialises in elder care. She has a degree in English language and literature from Manchester University and has been writing and reviewing products for a number of years.

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Frequently Asked Questions

How does the amount of savings I have affect my Universal Credit payments?

Your bank account balance can affect your Universal Credit payments. Your Universal Credit payment will be reduced by £4.35 per £250 in savings if you have more than £6,000 but less than £16,000 in savings. If your savings exceed £16,000, you will not qualify for Universal Credit.

How do I apply for Universal Credit, and what information do I need to provide?

To apply for Universal Credit, you must establish an online account and provide information regarding your income, savings, and housing costs. You may also be required to attend a Jobcentre Plus interview in your area. When applying, be prepared to provide bank statements and other financial documentation.

Can Universal Credit claimants have a savings account?

Yes, recipients of Universal Credit can have a savings account. However, your savings amount will affect your Universal Credit payment. If you have more than £16,000 in savings, you will not qualify for Universal Credit.

Are there any additional payments for individuals with health conditions or disabilities?

You may be eligible for additional payments, such as the Limited Capability for Work Element or the Severe Disability Premium, if your health condition or disability affects your ability to work. These payments are made in addition to your Universal Credit payment to assist in covering additional expenses related to your illness or disability.

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