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Original poster

To wonder why the UC savings threshold is £6,000?

856 replies

GiddyLurker · 18/04/2026 21:55

Why is the Universal Credit savings threshold set at £6,000? What’s the reasoning behind that number?

It feels quite specific and I just wondered whether there’s a particular logic or policy decision behind it?

OP posts:
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5
MidnightMeltdown · 18/04/2026 23:05

HortiGal · 18/04/2026 23:01

I should be much lower than £16k, utter joke that anyone can have this amount and be claiming benefits, live off your savings!

Disagree. What you can claim should be proportionate to what you have paid in, not related to savings. Those who have paid fuck all in, get fuck all out.

BooneyBeautiful · 18/04/2026 23:05

Hohumitsreallyallthereis · 18/04/2026 22:57

You should use your savings first. No wonder England has the problems it has.

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People are using their savings first. Nobody is saying otherwise. It's only when savings get to less than £16K (including what's in your current account etc) that you are entitled to claim UC.

Spookyspaghetti · 18/04/2026 23:04

Vaxtable · 18/04/2026 22:04

Just ask Chat GPT, they have come up with a very clear response

Lots of working people don’t have £6k in savings though, and personally I find it mad that those getting benefits can have this amount in savings when those working that dont get any form of support via benefits can’t save

Edited

Stop asking ChatGPT. It wastes valuable drinking water and has been proven to lower cognitive abilities.

Most people on UC are in work so if you are on enough money to not qualify for UC the question is how are you not managing to save? Are you putting extra money into your pension for example.

garlictwist · 18/04/2026 23:03

I work full time and have usually around 1k in my savings. Why should you get benefits if you have money in the bank?

ThatLemonBee · 18/04/2026 23:03

6k is ridiculously low , it’s most household wages for one to 2 months

newornotnew · 18/04/2026 23:03

HortiGal · 18/04/2026 23:01

I should be much lower than £16k, utter joke that anyone can have this amount and be claiming benefits, live off your savings!

Why do you pay your national insurance if not to support you if necessary?

previouslyknownas · 18/04/2026 23:03

GiddyLurker · 18/04/2026 22:06

No it’s not. It’s £6k

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6 k is what you can have before UC take any reductions from your UC. Anything up to 6k is fine to have in savings

between 6k -16k it’s 4.50 for every 250
so if you have 7k your UC is reduced by £18
the 1k over is what is used to reduce any money
Once you go over 16k your UC stops

XenoBitch · 18/04/2026 23:02

HortiGal · 18/04/2026 23:01

I should be much lower than £16k, utter joke that anyone can have this amount and be claiming benefits, live off your savings!

They do. It is tapered.

newornotnew · 18/04/2026 23:01

holidaysoff · 18/04/2026 22:54

If I had £16.1k in savings I’d be using that to support myself, not benefits

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And you're welcome to do that.

But I think the system I pay into should be there to support me at a reasonable level if I need it.

What are you paying your national insurance for?

HortiGal · 18/04/2026 23:01

I should be much lower than £16k, utter joke that anyone can have this amount and be claiming benefits, live off your savings!

BooneyBeautiful · 18/04/2026 23:01

Hohumitsreallyallthereis · 18/04/2026 22:47

Then they shouldn’t be applying for benefits!

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They absolutely should if their savings are less than £16K.

XenoBitch · 18/04/2026 23:01

LoudTealHare · 18/04/2026 22:59

Add in why someone over 25 living at home working part time still qualifies for a percentage of UC!

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I have a friend who is a pensioner. Her 40+ age son that lives with her claims UC... and why not?
Are you expecting pensioners to be supporting their adult kids now?

Coffeeandbooks88 · 18/04/2026 23:00

lazyarse123 · 18/04/2026 21:58

If you can afford to save that much you shouldn't need a fortune in benefits.

You don't get a fortune.

newornotnew · 18/04/2026 22:59

Hohumitsreallyallthereis · 18/04/2026 22:57

You should use your savings first. No wonder England has the problems it has.

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Yes people do use their savings first - the threshold has been held down for some time.

But it should be higher.

LoudTealHare · 18/04/2026 22:59

Fends · 18/04/2026 22:03

Right, and so it should before you get benefits. The benefit system can’t cope as it is, why should someone be sitting on 12k and claim UC?

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Add in why someone over 25 living at home working part time still qualifies for a percentage of UC!

Jeschara · 18/04/2026 22:58

Katypp · 18/04/2026 22:42

Annoying. He got a job though so all is well, although it felt like a kick in the teeth at the time. He is 63 and the Jobcentre could not have been less interested.

They may not be wrong. Does your husband get s occupational pension.

TheDelcosArabiaNSoul · 18/04/2026 22:58

holidaysoff · 18/04/2026 22:54

If I had £16.1k in savings I’d be using that to support myself, not benefits

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I know through our experience as said up thread it's pennies and not worth getting involved with benefit system.
And yes we were self sufficient for as long as we could be and then had to admit defeat.

BooneyBeautiful · 18/04/2026 22:58

Katypp · 18/04/2026 22:39

Yes i have been told that a couple of times on here. The woman at the Jobcentre was adament though.

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The amount of times I have heard about employees at the Jobcentre giving out completely wrong advice is ridiculous! Always use a benefit calculator. Gov.uk or the DWP have their own one, so you can always print it off and wave it in their faces!

newornotnew · 18/04/2026 22:58

holidaysoff · 18/04/2026 22:49

39% of people have less than £1,000 saved. It should be lowered.

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How would lowering the savings threshold help the nation?

It wouldn't.

Do try to understand real life - in capitalist societies humans need money to, for example, buy a car to get to work. Or pay for a training course. Or a flat deposit. Or buy a fridge.

Running people's savings down to nothing costs the taxpayer more, as it results in greater worklessness, greater homelessness, greater ill health etc.

XenoBitch · 18/04/2026 22:57

Hohumitsreallyallthereis · 18/04/2026 22:57

You should use your savings first. No wonder England has the problems it has.

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You can... down to £16k

Hohumitsreallyallthereis · 18/04/2026 22:57

newornotnew · 18/04/2026 22:52

Why not, if someone has paid in for thirty years, and lost their job - why not?

It's a safety net for every taxpayer, that's what it was designed to do - you pay in your NI, you receive some help when life bites you on the bum.

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You should use your savings first. No wonder England has the problems it has.

XenoBitch · 18/04/2026 22:55

holidaysoff · 18/04/2026 22:54

If I had £16.1k in savings I’d be using that to support myself, not benefits

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Yes, so what is your problem?

TheDelcosArabiaNSoul · 18/04/2026 22:55

Think a fair few pp haven't experienced the benefit system.
It's all the money you have as capital a savings account is not set aside and current account only is taken into consideration.

holidaysoff · 18/04/2026 22:54

XenoBitch · 18/04/2026 22:54

I bet you would be the first to complain of you needed benefits and could not claim because you have £16.1k in savings...

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If I had £16.1k in savings I’d be using that to support myself, not benefits

SpecialAgentMaggieBell · 18/04/2026 22:54

GiddyLurker · 18/04/2026 22:06

No it’s not. It’s £6k

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No, it’s £16k. Anything over £16k and there’s no entitlement. Anything between £6k and £16k deductions are made.