DWP says above £6,000 can reduce your Universal Credit Payment: Check Exact Eligibility

If you claim Universal Credit or plan to apply soon, there’s an important update from the Department for Work and Pensions (DWP) that you need to know. From now on, the DWP will start checking your bank account if your savings reach £6,000. This change is part of the government’s plan to stop benefit fraud and ensure payments only go to those who are truly eligible.

How Much Can You Have in Savings on Universal Credit?

To get Universal Credit, your savings and investments must usually be less than £16,000. This includes money in bank accounts, stocks, and other financial assets. If you’re applying alone or living with a partner, this limit stays the same.

Here’s how it works:

• If you have less than £6,000 in savings, your Universal Credit is not affected.
• If you have between £6,000 and £16,000, your Universal Credit payment is reduced.
• If you have more than £16,000, you are not eligible for Universal Credit.

How Payments Are Reduced for Savings Over £6,000

For every £250 you have over the £6,000 limit, your monthly Universal Credit is reduced by £4.35. If the amount over £6,000 is not a full £250, it still counts, and another £4.35 is deducted.

Example:

If you have £6,300 in your bank account:

• The first £6,000 is ignored.
• The extra £300 is treated as income.
• That £300 leads to a £8.70 reduction in your Universal Credit each month.

This rule applies whether or not your savings actually give you any income. It’s based on what the DWP calls “tariff income.”

Other Benefits Affected by Savings

This same rule also applies to people who claim:

• Income-based Jobseeker’s Allowance (JSA)
• Income-related Employment and Support Allowance (ESA)
• Income Support
• Housing Benefit

For these, £1 per week is taken off your payment for every £250 (or part of it) over the £6,000 limit.

Why the DWP Is Checking Bank Accounts

The government is increasing efforts to fight benefit fraud. Liz Kendall, the new Secretary of State for Work and Pensions, said that they’re “turning off the tap” for criminals who cheat the system. This includes checking bank accounts of claimants with more than £6,000 in savings.

If someone is found guilty of cheating the system, they may face serious consequences — including having their driving licence removed in extreme cases.

Kendall also said that these actions will have proper safeguards, including checks and reporting systems, to make sure they are used fairly and safely.

Easter Benefit Payment Dates Changed

If you receive Universal Credit, Carer’s Allowance, PIP, Pension Credit, or State Pension, please note that Easter holidays affected the payment schedule.

Any payments that were due on April 18 or April 21 were paid early, on April 17.

This is a normal practice for holidays — when banks are closed, payments are made earlier to avoid delays.

What To Do If Your Payment Is Late

If your expected payment didn’t arrive, don’t panic. You should contact the DWP directly using the helplines below:

• Universal Credit Helpline: 0800 328 5644
• PIP Enquiry Line: 0800 121 4433

Make sure your bank account details are correct and that you’ve checked your bank statement before calling.

The DWP’s new rules mean that even people with just £6,000 in savings can now have their bank accounts monitored. While these rules are meant to stop fraud, many honest claimants must now be more careful with how much they have in the bank.

If you receive Universal Credit or any similar benefit, it’s important to keep track of your savings and understand how they can affect your payments. Also, keep an eye on benefit payment dates during public holidays to avoid confusion or delays. Always contact the DWP if you think something is wrong with your payments.

Source

FAQ