The Department of Work and Pensions will start withdrawing benefits above a certain amount in savings
People who have more than £6,000 in their bank account have been warned that there will be bank account checks if they are claiming Universal Credit. The Department for Work and Pensions will start withdrawing the benefit for anyone with between £6,000 and £16,000 in savings.
To be eligible to receive benefits from the DWP, people must usually have no more than £16,000 in savings or investments. And there are now going to be checks to ensure people are not cheating the system.
Secretary of state for work and pensions, Liz Kendall, said: “We are turning off the tap to criminals who cheat the system and steal law-abiding taxpayers’ money.
“This means greater consequences for fraudsters who cheat and evade the system, including as a last resort in the most serious cases removing their driving licence.
“Backed up by new and important safeguards including reporting mechanisms and independent oversight to ensure the powers are used proportionately and safely.” For money-saving tips, sign up to our Money newsletter here
Universal Credit rules set by the government warn people that: “To claim Universal Credit, you must usually have no more than £16,000 in money, savings and investments as a single claimant or if you are living with a partner. If you have money, savings and investments between £6,000 and £16,000, your Universal Credit payments will be reduced.”
If people have more than £6,000, their payments will be reduced in stages. Payments will be reduced by £4.35 for every £250 that a person has between £6,000 and £16,000. Another £4.35 is taken off for any remaining amount that is not a complete £250.
The reason for this is the the DWP believes that someone can get a monthly income of £4.35 for every £250 in their bank account. So if as person has £6,500 in a savings account, £6,000 of it will be ignored and the other £500 will be treated as giving you a monthly income of £8.70. This is then deducted from your monthly Universal Credit payment, reports Birmingham Live.
If someone is receiving Job Seekers Allowance or income-related ESA, they will have £1 a week taken out of their benefits for every £250 (or part of it), in their savings of more than £6,000. This also applies to income support and housing benefit.
These benefits are normally paid into accounts every two weeks.
Over Easter, any benefit payments due on April 18 or April 21 will come into bank accounts on April 17 instead.
This will be the case if you claim universal credit, carer’s allowance, PIP or pension credit — as well as the state pension.
If your expected payment date is correct and the funds are missing, you should contact the Universal Credit helpline on 0800 328 5644, or the PIP enquiry line on 0800 121 4433.
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