Universal credit: How much savings can I have on universal credit?

Universal Credit came as a saving grace for millions of people during the coronavirus crisis this year. Government officials decided to extend the breadth of the policy to more claimants due to the job implications of the resulting lockdown. Those who found themselves out of a job due to the disease could back their income with the Tory subsidy, but not everyone may claim it.

How much savings can you have on Universal Credit?

Universal Credit can either subsidise or replace the majority of someone’s income in the UK.

The Government policy has proved both a lifesaver and nuisance for many people, but the coronavirus pandemic has given it a chance to show its worth.

While more people than ever can claim it, whether or not they are eligible depends on how much they have in savings.


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Those hoping to reap the benefits of Universal Credit will find the amount they get is affected by their savings.

As with many of the means-tested subsidies, people need to have less than a set amount in their savings account to receive it.

Claimants who have £6,000 in their savings will find the amount they receive is not affected.

However, officials will treat any amount exceeding this as monthly income.

They treat each £250 exceeding the £6,000 allowance as a monthly income of £4.35.

For example, claimants with £10,000 in their bank account will have £174 taken off their overall monthly payment.

The upper limit of the savings rule is £16,000, and people with this amount in savings will not qualify for benefits.

People will also find similar limitations apply to income.

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Employed people receiving the benefit will find they receive money based on the work allowance.

The work allowance is the amount they can earn before benefit payments are affected, which exists for disabled people or adults with dependant children.

People who also receive help with their housing costs will find they get less than those who don’t.

Work allowance and savings apply across a range of means-tested benefits.

Benefits affected by both income and savings also include the following:

  • Income-based Jobseekers Allowance
  • Income-related Employment and Support Allowance
  • Housing Benefit
  • Income Support
  • Pension Credit

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