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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
IDontHateRainbows · 18/04/2026 22:17

NeverDropYourMooncup · 18/04/2026 22:07

Because it was a year's salary for an office junior (or AA in the civil service) in about 1994. It's just never been increased in the subsequent three decades.

I seem to remember these figures from when I first signed on in the late 90s but thought surely they must have increased it since then?

BooneyBeautiful · 18/04/2026 22:15

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

But if you are a homeowner it's sensible to have a little cushion of savings for unexpected expenses, such as the boiler needing replacing etc. It's been £6000 for donkeys years, even when UC didn't exist and it was Income Support.

youalright · 18/04/2026 22:15

Pickledonion1999 · 18/04/2026 22:10

The limit is 16k !

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But it reduces at 6k. Im not really sure how it works but say you take 2 years to save for a new car. Bearing in mind the money in your account isn't just savings its money for mortgage bills etc so realistically its only about 4k of savings you can have. So when you get to the 6k mark you inform uc they mess about with your payments then you buy a car you no longer have 6k a week later and you have to contact them again to put it back to where it was obviously this takes time there will be some kind of admin error like there usually is now you have no money.

newornotnew · 18/04/2026 22:15

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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Oh I'm sick of this shit.

People on UC long term rarely have any savings.

Someone who has paid in to the system for 20, 30 years shouldn't have to run everything down to rock bottom before getting short term help after they've paid in for all their working years.

This country has completely lost the plot about benefits.

Kirbert2 · 18/04/2026 22:12

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

Lots of people on UC don't have £6k in savings either. I have £0 if that helps.

newornotnew · 18/04/2026 22:11

TomatoSandwiches · 18/04/2026 22:08

Average cost of a funeral?

About £4k.

NeverDropYourMooncup · 18/04/2026 22:11

NeverDropYourMooncup · 18/04/2026 22:07

Because it was a year's salary for an office junior (or AA in the civil service) in about 1994. It's just never been increased in the subsequent three decades.

Oh, and at that time, it would also have represented a 10% deposit for a house and have money for the assorted fees and moving costs so that somebody could move to take up a job somewhere else. Almost as though it was intended to make it possible to get out of the benefits trap.

Pickledonion1999 · 18/04/2026 22:10

youalright · 18/04/2026 22:09

I think 6k is to low how are you suppose to save for a new car (not actually new) or a holiday or a new boiler etc a lot of people on uc work aswell

The limit is 16k !

XenoBitch · 18/04/2026 22:10

lazyarse123 · 18/04/2026 21:58

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

People might have had that much in savings when they started to claim benefits.

newornotnew · 18/04/2026 22:09

Changingplace · 18/04/2026 22:00

Can you explain why you think it’s low?

Many people working full time don’t have this amount of savings, I don’t think tax payers money should go to people who have £12k in the bank.

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Socially there's a huge cost to making families precarious. The state picks up the tab if people can't, for example, buy a car to get to work. Or can't afford to relocate for a job. Or can't afford a deposit on a rental.

Wanting to be excessively tight with benefits is a peculiar form of self-sabotage - it harms the taxpayer to be too restrictive, but still people want it. Just don't understand how the world really works presumably, live in a childish imaginary world where nothing costs money.

Don't forget those who claim UC are also taxpayers - most of them work, and all of them pay VAT.

youalright · 18/04/2026 22:09

I think 6k is to low how are you suppose to save for a new car (not actually new) or a holiday or a new boiler etc a lot of people on uc work aswell

neilyoungismyhero · 18/04/2026 22:09

My husband and I have worked hard and diligently all our lives and maybe to our shame have never had 12k in our bank account.

XenoBitch · 18/04/2026 22:08

GiddyLurker · 18/04/2026 22:06

No it’s not. It’s £6k

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No, the cut off is £16k. Between £6k and £16k, you lose some benefits.

Pickledonion1999 · 18/04/2026 22:08

GiddyLurker · 18/04/2026 22:06

No it’s not. It’s £6k

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It is 16k . Get your facts correct. Your monthly amount starts to reduce slightly for anything over 6k but you can still get UC with savings up to 16k.

TomatoSandwiches · 18/04/2026 22:08

Average cost of a funeral?

mindutopia · 18/04/2026 22:07

I can’t work due to cancer. I don’t qualify for UC. I currently have £200 in my savings and that’s only because I moved it over from my current account so direct debits wouldn’t eat it before the end of the month. Currently eyeing up the dc’s savings accounts for emergency use. What I’d do for £6000 in savings. Some people must live quite well. 😳

BinseyPoplars · 18/04/2026 22:07

Nurturegrow11 · 18/04/2026 22:01

The thing is £12k goes incredibly quickly (just a few months) if you suddenly loose your job.. and for instance have never claimed benefits before.

I suppose on this logic maybe they should take the average time it takes to receive money when you claim it, and multiply by eg the average weekly household costs, and use that amount? So that people have that buffer for when they need it

It does sound crazy that someone with five figures in the bank gets money from the tax payer to live on - but I’ve fortunately not been in that position so don’t know all the niceties

NeverDropYourMooncup · 18/04/2026 22:07

Because it was a year's salary for an office junior (or AA in the civil service) in about 1994. It's just never been increased in the subsequent three decades.

Original poster
GiddyLurker · 18/04/2026 22:06

Pickledonion1999 · 18/04/2026 22:04

It isn't 6k it's 16k. There is a small reduction on anything over 6k but under 16k.

No it’s not. It’s £6k

OP posts:
XenoBitch · 18/04/2026 22:06

It is the point at which your benefits taper off. Off the top of my head, is about £4 for every £250 over the £6k that gets deducted.
The point at which you can not claim at all is £16k.

If you work and claim UC, there is a government savings scheme called 'Help to Save'.
Saving money is encouraged. Everyone needs something for a rainy day.

topcat2026 · 18/04/2026 22:05

Nurturegrow11 · 18/04/2026 22:01

The thing is £12k goes incredibly quickly (just a few months) if you suddenly loose your job.. and for instance have never claimed benefits before.

Most people’s monthly essential expenses are not £4k.

AbzMoz · 18/04/2026 22:05

It’s £6k for full allowance but then it tapers down until those with £16k get nothing.
Google is saying the UK median savings is £9k and up to 40 percent of people have less than £1k.

Pickledonion1999 · 18/04/2026 22:04

It isn't 6k it's 16k. There is a small reduction on anything over 6k but under 16k.

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

Fends · 18/04/2026 22:03

Nurturegrow11 · 18/04/2026 22:01

The thing is £12k goes incredibly quickly (just a few months) if you suddenly loose your job.. and for instance have never claimed benefits before.

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?