Savings thresholds for UC unchanged in a decade.

Campbell
Campbell Community member Posts: 2 Listener
in Universal Credit (UC)
I understand that UC is affected after £6000 in savings is exceeded. 

After some research, I found that this figure is unchanged since 2014. Allowing for inflation, this figure should now be c.£7000 yet has never changed.

Is anyone aware of any review of these thresholds? If it never changes, it won't be long before £6000 is worth very little.

Comments

  • 66Mustang
    66Mustang Community member Posts: 14,985 Championing
    Hey @Campbell

    Just want to say that it's great to finally see someone with a similar train of thought to me...

    I have been thinking about the savings limits load of times, including the fact that the £6,000 is unchanged with inflation. I have brought the subject up a few times but the consensus of this community is that £6,000 is high enough - I assume because for many claimants people £6,000 is a pipe dream so they don't like the idea of supporting those who are fortunate to be able to save up

    A couple of comparisons though, in Australia the limit is up to A$250,000 and in Ireland I believe it's €50,000

    I guess in lots of countries they like the idea of people saving up for things like a house, and ultimately saving the government money in housing benefit and stuff

    Here they encourage you to burn up savings unnecessarily, which I suppose does have advantages as it boosts the economy...
  • poppy123456
    poppy123456 Community member Posts: 61,069 Championing
    The capital limits have been in place for much longer than 2014. They’ve actually been the same for decades. This applies to all means tested working age benefits. https://publications.parliament.uk/pa/cm200607/cmselect/cmworpen/463/46308.htm

    The lower limit in £6,000 and then there’s a deduction of £4.35/month for every £250 or part thereof over that amount. Over £16,000 and entitlement ends. 

    To be honest I can’t see that changing anytime soon. Do also remember that if you received any cost of living payments they are disregarded indefinitely. 


Categories