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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
newornotnew · 18/04/2026 22:34

Hohumitsreallyallthereis · 18/04/2026 22:31

The current rate up to 16k is more than generous. If you can save that kind of money you should not be getting benefits

Don't be silly - very few people ON benefits are saving up.

It's a threshold for people who get made redundant after 30 years of contributions to the state - so they can get a few months help while they look for their next job.

Honestly - people are so obsessed with being 'tough' they forget how the real world works.

Cheezewizz · 18/04/2026 22:34

I claim uc (both working parents) but my children have a junior Isa which I added too years ago (when I could afford too) and family members have added to along with birthday/Christmas money from family but because it has to have an adult account holder named on the isa, it counts as my savings too even though I have never touched it and it’s their money not mine. So even though I don’t have even close to that in my account, my savings are classed over 6k.

BringBackCatsEyes · 18/04/2026 22:34

I think the 'savings' gives recipients a buffer before they need even more support (thus costing the State more).

My savings would have allowed me to pay my mortgage and bills for longer, allowing me a bit longer to find work and get back on my feet w/o having to sell my home and car and register for all the benefits that those who have nothing at all are entitled to.

Editing to add - I was made redundant in Sept and found work in Jan, but those 3 months were really horrible time.

XenoBitch · 18/04/2026 22:34

Katypp · 18/04/2026 22:33

And others - like my husband - couldn''t even claim Jobseekers after paying tax and NI for 40 years as he had a small pension worth considerably less than £6000.
So much unfairness in the system.

Edited
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There is contributions based JS. He could have claimed.

PILEALLTHEPILLSONTHEFLOOR · 18/04/2026 22:33

It's about 2-4 months in essential expenses for most people, which is enough to tide you over for a bit, I think it's perfectly reasonable. Most gainfully employed people don't even have 6k saved.

BooneyBeautiful · 18/04/2026 22:33

Pickledonion1999 · 18/04/2026 22:19

But surely if it was redundancy money it wasn't savings, it was money to support you until you found another job?

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Yes, that's what it would have been used for, but it still would have been classed as savings, i.e. money in the bank.

Katypp · 18/04/2026 22:33

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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And others - like my husband - couldn''t even claim Jobseekers after paying tax and NI for 40 years as he had a small pension worth considerably less than £6000.
So much unfairness in the system.

XenoBitch · 18/04/2026 22:33

Hohumitsreallyallthereis · 18/04/2026 22:31

The current rate up to 16k is more than generous. If you can save that kind of money you should not be getting benefits

No one on benefits is saving that amount, but people applying for benefits might have that amount saved.

youalright · 18/04/2026 22:32

Hohumitsreallyallthereis · 18/04/2026 22:31

The current rate up to 16k is more than generous. If you can save that kind of money you should not be getting benefits

I don't think anyone is complaining about the 16k cut off people are complaining about the hassle of the 6k reductions

XenoBitch · 18/04/2026 22:32

Pickledonion1999 · 18/04/2026 22:30

I think savings for a house deposit should be an exception to the 16k threshold. It would help people to get away on relying on Uc for rent and would save money in the long run.

I think money for buying property is disregarded, but it is very time limited.

elliejjtiny · 18/04/2026 22:32

We don't have anywhere near that in savings but £6k is just about enough to buy a 2nd hand car if ours packs up.

BooneyBeautiful · 18/04/2026 22:31

IDontHateRainbows · 18/04/2026 22:18

So what's to stop people buying jewellery/ gold and saying hey I've got less then 6k in savings now?

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They do ask for bank statements, I think going back six months (but can ask to check further if necessary, I believe). If they think you have deprived yourself of capital in order to claim UC, they won't give you any money until such time as they think you would have normally spent that money.

Hohumitsreallyallthereis · 18/04/2026 22:31

The current rate up to 16k is more than generous. If you can save that kind of money you should not be getting benefits

XenoBitch · 18/04/2026 22:31

Apprentice26 · 18/04/2026 22:28

It’s three months salary at minimum wage if you think about it
Which everybody should have

Yep, there was a couple of threads on here about this recently. One was OP not believing that some people do not even have £100 in savings, and the other was that all women shoudl have £20k stashed away.

newornotnew · 18/04/2026 22:30

Apprentice26 · 18/04/2026 22:28

It’s three months salary at minimum wage if you think about it
Which everybody should have

And as min wage has risen, the savings thresholds should have risen accordingly.

Pickledonion1999 · 18/04/2026 22:30

I think savings for a house deposit should be an exception to the 16k threshold. It would help people to get away on relying on Uc for rent and would save money in the long run.

Apprentice26 · 18/04/2026 22:29

AnotherName2025 · 18/04/2026 22:28

Is there anyway you could do the renovation in stages so that you could pay then save up to £6k again? Or pay a hefty deposit & continue to save?

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And what if the Bullders run off with her hefty deposit there’s literally no way of recovering it in the construction industry is overrun by Cowboys

youalright · 18/04/2026 22:29

TheDelcosArabiaNSoul · 18/04/2026 22:26

No I'm sure you've to leave it in over a 2 year period whilst in the scheme.

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That wouldn't work for me as soon as I start saving something breaks or the kids need something.

Apprentice26 · 18/04/2026 22:28

It’s three months salary at minimum wage if you think about it
Which everybody should have

AnotherName2025 · 18/04/2026 22:28

DoAWheelie · 18/04/2026 22:20

The issue is, many disability adaptations cost more than £6k so it can stop some disabled people from being able to save up for things that could massively improve their quality of life.

I've been assessed as needing a power wheelchair by the NHS but denied funding for one as my flat isn't suitable to get one in and out (i agree with the decision btw it really is impossible).

In order to get the wheelchair funded I'd need to spend around £10k+ to have a wall ripped out and replaced with a patio style door + ramp plus have all my doorways widened. Or move - but I've not found a single property in my area suitable in over 2 years of looking and I need to stay in the area as my carers are here. I can't get a building grant as I already had one to redo the bathroom as I was no longer able to bathe.

So I either need to pay out of pocket for the chair (£7k) and then build some sort of outdoor storage, or pay for the renovations, and get a funded chair. Either way I'd need to save up more than the limit.

The £6k limit also hasn't changed since 2006. Adjusted for inflation it should be over £11k so £12 isn't far off.

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Is there anyway you could do the renovation in stages so that you could pay then save up to £6k again? Or pay a hefty deposit & continue to save?

newornotnew · 18/04/2026 22:28

ladyamy · 18/04/2026 22:23

.

Edited

Don't be silly.

As a taxpayer there is a huge risk in running people's savings down to low levels - you make them very vulnerable to any cost, leading to homelessness (expensive for the taxpayer) ill health (expensive for the taxpayer) and crime (expensive for the taxpayer).

I do wish people would try to use sense and logic when discussing policy.

XenoBitch · 18/04/2026 22:26

ladyamy · 18/04/2026 22:23

.

Edited

Well that makes no sense. If I have £5 left at the end of the month, then I should have my UC stopped? Why?

TheDelcosArabiaNSoul · 18/04/2026 22:26

youalright · 18/04/2026 22:24

How do you do that and can you keep dipping in and out of it. I've never heard of it

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No I'm sure you've to leave it in over a 2 year period whilst in the scheme.

youalright · 18/04/2026 22:25

ladyamy · 18/04/2026 22:23

.

Edited

That is probably one of the stupid comments I've ever seen on mumsnet and that says a lot

newornotnew · 18/04/2026 22:24

XenoBitch · 18/04/2026 22:23

https://www.gov.uk/get-help-savings-low-income

If you work and claim UC, you get 50p for every £1 you save for 4 years.

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Only on very limited amounts.