Universal Credit - Capital savings £16000 or more warning!

[unclebulgaria67]

Hi

 

In these uncertain times, it is important to not make life more complicated and cause yourself stress that could have been avoided.

 

There appears to be some misinformation or a misunderstanding online regarding the capital savings and investments limit for Universal Credit.

 

If as single claimants or couple claimants you have £16000 or more in capital savings and investments, you are unlikely to be able to claim Universal Credit.   This obviously does not include the home where you reside, but can include any second property you own.  

 

Apparently people are trying to make Universal Credit claims, when they have capital above the limit.  If they have existing Tax Credits claims, these will be stopped, as soon as they click to register the Universal Credit claim. If the Universal Credit claim is then closed as no entitlement due to capital, it can then be difficult to get the Tax Credit claim restarted.

 

For more information on what capital Universal Credit takes into account, please see document H1 in the following link ( you have to scroll down the documents in the link to get to H1). There is also a separate document H2 in the link for capital disregards. Please note that the disregards are not automatic. You have to disclose the capital and it is up to Universal Credit Decision Makers to apply the disregard.

 

https://www.gov.uk/government/publications/advice-for-decision-making-staff-guide