What will affect your Universal Credit payments

Savings, assets and investments

The value of any savings, assets and investments you own, or jointly own (for example, interest on savings, rent you receive from properties you own or dividends from shares) is considered to be ‘capital’ and can affect whether you are eligible for Universal Credit and how much you get.

Capital includes:

• cash and money in bank, building society and Credit Union accounts, including current and savings accounts, Individual Savings Accounts (ISAs) and other savings accounts
• Premium Bonds, dividends and stocks and shares
• money that belongs to someone else, but is in your name, including savings for children in your name
• property you own but do not live in yourself (apart from certain circumstances) and property, land and savings abroad

This is not a complete list of what is considered to be capital.

If you are not sure whether your savings, assets and investments would be considered as capital, contact Universal Credit to find out.

Universal Credit does not take your debt into account when working out your total savings, assets and investments.

Capital with a value of £6,001 to £16,000 will affect your Universal Credit. For each £250 above £6,000, your Universal Credit is reduced by £4.35 a month. If it is not a complete £250, it is rounded up to the next £250.

For example: If you have capital of £6,300, your Universal Credit will be reduced by £8.70 a month until the value of your capital is £6,300 or less.

When your capital is £6,250 or less, your Universal Credit will be reduced by £4.35 a month until the value of your capital is £6,000 or less.  Once your capital is £6,000 or less, your Universal Credit will no longer be reduced.

If you have capital valued at £16,000 or more, you are not entitled to Universal Credit.

Compensation and Welfare Support Payments

Some compensation and welfare support payments are not taken into account for up to 12 months, or indefinitely. These include personal injury and illness compensation and some special compensation schemes.

For more information on which payments are excluded, speak to your Work Coach.

Reporting your capital

You will be asked to tell us about all the savings, assets and investments you have when you make your claim.

It is important to report any changes to your savings, assets and investments as soon as they happen.

If you give false information about your savings, assets and investments or deliberately reduce them to get Universal Credit or increase your payments, you may be prosecuted or have to pay a penalty.

‘Capital disregards’ are amounts of capital that are not taken into account when deciding how much Universal Credit you can get.  Capital disregards include:

• assets of a business that is trading
• premises or land you live in
• occupational and personal pensions

This is not a complete list.  For more information, speak to your work coach.

Unearned income

Regular income other than earnings (including some benefits) will usually be treated as unearned income when working out your Universal Credit payments.  This means that you will get less Universal Credit.

Unearned income includes:

• pension payment
• student income
• employment and training payments paid as a substitute for Universal Credit or for living expenses

This is not a complete list.  For more information, speak to your work coach.

Deductions

You may get less Universal Credit if you:

• have had a Universal Credit advance
• have had a Hardship Payment
• have had a Fraud Penalty
• have had a Sanction
• owe money to third party suppliers (for example, gas and electricity companies
• have benefit debt or have received benefit overpayments
• have received Tax Credit overpayments

You can find information on when money can be taken from your Universal Credit payments, and who to contact if you have any questions.

Benefits that can affect your Universal Credit payment

You can get Universal Credit at the same time as other benefits. Your Universal Credit payments will be reduced by the amount of the payments you get for:

• Armed Forces Pensions
• Carer’s Allowance
• Carer Support Payment (Scotland)
• Incapacity Benefit
• Industrial Injuries Disablement Benefit (excluding any increases where constant attendance is needed and for exceptionally severe disablement)
• Maternity Allowance
• New Style Employment and Support Allowance
• New Style Jobseeker’s Allowance
• Severe Disablement Allowance
• State Pension
• Widowed Mother’s Allowance
• Widowed Parent’s Allowance

Sanctions

Your Universal Credit payment may be reduced if you do not meet the responsibilities set out in your Commitment and you cannot give a good reason to explain why. This is known as a Sanction. 

With a Sanction, you will be told how much of your Universal Credit payment you will lose and for how long.