Universal Credit Savings Limit

[DavidB6721]

Nobody with more than £16,000 in capital is allowed to claim any means tested benefits in the UK. Do you think this limit seems a bit low? The reason for that is because it has not been increased for 33 years!

If you think that is not fair, you might be interested in one of the petitions on the UK parliament website at the moment, which is calling for a substantial increase in the benefits capital limit (petition number 590695).

If the moderators will allow me to include a link, you can find it at:

petition.parliament.uk/petitions/590695

If you agree, you might wish to consider consider signing this petition and sharing it on social media, etc.

What on earth do you need state support for if you have more than 16k in the bank?

I'm on UC, I have 0 in savings, 0 pension, 0 property.

I get £950 monthly. So 16k for someone should be enough for them to live for over 16 months.

17 people have signed the petition as of 5 mins ago,says it all really .

I agree that the upper limit and lower limit should be reviewed. Like you said it’s not changed in years. Neither has the earnings disregard on legacy benefits.

@stackhead

What on earth do you need state support for if you have more than 16k in the bank?

Seemingly getting money for nothing is more fun.

Actually a lot of people who receive state benefits eg UC work. Shock horror some of those who receive it even with for DWP. Shock horror even a professional couple in rented accommodation with children qualify. It’s not money for nothing thanks. It’s money to bridge the gap between not enough wages, childcare costs and rents.

Why on Earth would you need to claim UC if you had 16k in savings?

If anything the limit should be lower.

@CornishTiger but with 16K in the bank, should that not be the funds bridging "the gap between not enough wages, childcare costs and rents"?
Myself and my partner do not qualify for UC, and have about £100 ish left over after all essentials each month. It would take us just over 13 years to save up £16K for a deposit on a house.
Why should someone with that amount of savings be receiving top ups?

You must be joking.
There are loads and loads of jobs going where I am. Get a bloody job.

We have a UC top up. Cannot imagine us ever having £16k savings, that limit is extremely generous. I would feel very rich indeed! No reason anyone with that kind of money in the bank needs a UC top up

@MrsKeats

You must be joking. There are loads and loads of jobs going where I am. Get a bloody job.

Really?

I can’t imagine it will get many signatures op. 16k in the bank could be used as living expenses for over a year for me.

If you spend all you get, you can carry on being topped up with uc. Save for say a house and it reduces. Best off stashing it under a mattress

Yep every shop and restaurant has a sign up.
My friend has been looking to employ a chef for months now.

Because benefits are a safety net, if you have £16k you don't need help.

Yep every shop and restaurant has a sign up.
My friend has been looking to employ a chef for months now.

^^ majority of universal credit claimants work. Wages are soo abysmal a benefit system is required to top people up.

I agree OP. I've signed the petition.

If nothing else, the threshold should be increased for private renters. Perhaps there could be an increased limit for savings specifically ringfenced for home deposit.

Particularly important nowadays - with the lack of safety net. Frequently private rents exceed housing benefit levels.

Vulnerable disabled and long term ill people are especially harmed by the low threshold.

Currently private renters who lose their job or get sick end up spending all their savings on rent - only to often end up homeless (costing the taxpayer loads on temporary accommodation).

If there was more social housing, it wouldn't matter so much.

@MrsKeats

You must be joking. There are loads and loads of jobs going where I am. Get a bloody job.

Don’t fall down hole of the tabloid newspaper myth that most people on benefits don’t work.

@gogohm

Because benefits are a safety net, if you have £16k you don't need help.

That goes quick for many private renters, particularly families with young children and vulnerable disabled people (who obviously can't just rent a cheap single room).

And once the money is gone... boom - homeless. Especially since so many landlords don't accept tenants on benefits.... except when they have savings to pay rent upfront...

Look at Tax credits. There was no savings limit at all on that. If you had savings that attracted profit from interest over a certain amount then that was treated as income.

We work. Full time. Decent jobs. We have savings. We qualify for UC. I won’t be discouraged from saving and live modestly. However the lower and upper savings limit is restrictive and hasn’t changed in years. 16k all those years ago was a hefty sum. Now it’s not as significant.

We’d like to save for a deposit and if we got a mortgage wouldn’t qualify for UC. It’s our rent that qualifying us. But only over 6k has a Tartuffe income applied. We’ll still be motivated to save but many aren’t.

Also, pensions. If people can't save for one, the state aka the taxpayer has to pay the cost.

Taking into account the costs to the taxpayer of funding homeless accommodation and state pensions the low savings threshold (and lack of social housing) is a false economy.

So on these abysmal wages you can save up 16k? Can't be that abysmal then can they?
Come on now.

What should the limit be then? Ridiculous.

So on these abysmal wages you can save up 16k? Can't be that abysmal then can they?
Come on now.

^^ working full time and a single parent I'm topped up with universal credit. Will take some time but will get there. Once I have a mortgage I'd lose the housing element of universal credit and will receive nothing. 16k isn't enough for a house deposit sadly. Without the top up of universal credit I'd have to dip into the 16k.

@MrsKeats our total wage isn’t even that abysmal thanks. Luckily we work hard but are still entitled to UC. Tbh some months we are waiting for that small payment other times we manage to save it.

We probably have about 3k in savings now.

I’d suggest the capital limit was increased to 21k and lower amount to 10k. It would also reduce admin costs on capital reviews.

I’d also suggest that a work allowance was introduced for single people or couples without children so work really did seem attractive.

Buy hey I’ve worked in this arena for 24 years so what do I know.