Will paying off my mortgage affect my benefits?

If you currently have capital/savings of more than £16,000 you must still report the changes and then tell them that you have paid off your mortgage. Your UC will continue if you have less than £16,000 after it’s paid off but there will be a deduction of £4.35/month for every £250 or part thereof over £6,000.

If you’re claiming council tax reduction all local authorities have their own rules and some have savings limits of £6,000 before entitlement end. You must report the changes to them.