Universal Credit is claimed by more than six million people across the UK. But if you have savings or investments, the Department for Work and Pensions (DWP) can reduce your Universal Credit payments, or stop your claim altogether. If you have over £6,000 in money, savings and investments, your benefit will be reduced by £4.35 for every £250 you have between £6,000 and £16,000. Another £4.35 is taken off even if any extra amount you have saved is not quite £250. For example, if you have £6,300 in savings, you won't not face any deductions on the first £6,000, but the other £300 would see your payments deducted by £8.70.
These figures apply if you're a single claimant, or claiming as part of a couple. You normally won't be eligible to get Universal Credit if you have more than £16,000 in savings or investments. If you claim Tax Credits and you've been asked to move to Universal Credit, you may still be able to get Universal Credit for up to a year if you have more than £16,000. Universal Credit is made up of a standard allowance, which is the basic amount you get before any additional elements - for example, if you have children or are unable to work due to illness - or any deductions are taken into account.
If you work, there is a taper rate which reduces your maximum Universal Credit payment as your earnings increase. The taper rate is 55% which means 55p is deducted from your maximum Universal Credit payment for every £1 you earn. Some people get a "work allowance" which is a set amount you can earn before your Universal Credit is reduced. Universal Credit payments are rising by 1.7% from this April. Here is how much your payments will rise by, although keep in mind Universal Credit is paid in arrears, so you may not see these increased amounts until May or June.
