How do savings affect Universal Credit?

For people with savings who claim, or want to claim, Universal Credit.

Applies to: England, Scotland, Wales Last checked against official sources: 6 October 2026

Savings under £6,000 do not affect Universal Credit, but savings between £6,000 and £16,000 reduce it, and over £16,000 you cannot usually claim.

Between £6,000 and £16,000, your payment goes down by £4.35 a month for every £250 or part of £250.
A couple's savings are added together, even if one partner is not eligible.
Savings include cash, bank accounts, ISAs, Premium Bonds, shares and crypto.
Your own home and money in your children's names do not count.
Giving money away to get more Universal Credit can be treated as if you still have it.

Different in Scotland, Wales or Northern Ireland

Rules may be different in:

Northern Ireland: Check nidirect for Northern Ireland

Key facts

Under £6,000: no effect
£4.35 off per £250 over £6,000
Over £16,000: not eligible
Couples: savings added together

The savings limits

Your savings (2026/27)	Effect on Universal Credit
£6,000 or less	No effect
£6,000.01 to £16,000	Payment goes down by £4.35 a month for every £250 or part of £250
Over £16,000	You cannot usually get Universal Credit

These limits are the same for a single person and a couple. A couple does not get double.

How the reduction is worked out

The £4.35 is called "tariff income". Universal Credit pretends your savings give you £4.35 a month for each £250 over £6,000. Any part of a £250 counts as a full £250.

Savings	Amount over £6,000	Blocks of £250	Monthly reduction
£6,300	£300	2 (one full, one part)	£8.70
£7,100	£1,100	5 (four full, one part)	£21.75
£8,000	£2,000	8	£34.80
£16,000	£10,000	40	£174.00

Example: a single person aged 30 with £8,000 saved would normally get a standard allowance of £424.90 a month. Their savings reduce it by £34.80, so they get £390.10.

What counts as savings

cash, and money in any bank or savings account
cash ISAs and stocks and shares ISAs
Premium Bonds, shares and cryptoassets
money you inherit
benefits or income left over from the last assessment period, including unspent PIP or DLA
property you do not live in, such as a rental property

What does not count

Ignored	For how long
Your own home	As long as you live there
Savings in your children's names	No time limit
Certain compensation schemes (such as infected blood, Post Office Horizon and Grenfell)	No time limit
Money from selling your home, to buy another	6 months
Compensation for a personal injury	12 months
Back payments of benefits	12 months

Giving money away

If you knowingly spend or give away savings to get Universal Credit, or to get more of it, this is called "deprivation of capital". You may be treated as still having the money. Paying off debts or buying reasonable things is not deprivation.

Telling Universal Credit

You must declare all your savings when you claim. If they go up or down, report it as a change of circumstance in your online account.

If you live in Scotland, Wales or Northern Ireland

The savings rules above apply across Great Britain. Some Scottish welfare payments (Carer's Assistance, Early Years Assistance, Funeral Expense Assistance and Winter Heating Assistance) are also ignored for up to 12 months. In Northern Ireland, Universal Credit is run by the Department for Communities, so check nidirect.

Related guides

Where these figures come from

Get it done

This takes you to the official service, which is free to use.

Check what you could get

Common questions

Do ISAs count as savings for Universal Credit?

Yes. Cash ISAs and stocks and shares ISAs both count.

Does my partner's savings count?

Yes. Your combined money, savings and investments count, even if your partner is not eligible.

Can I spend my savings to get Universal Credit?

Paying debts or buying reasonable goods is fine, but if you knowingly reduce savings to get or increase Universal Credit, you can be treated as still having them.

Official sources

1.Universal Credit: money, savings and investments (GOV.UK)www.gov.uk/guidance/universal-credit-money-savings-and-investments
2.Universal Credit: eligibility (GOV.UK)www.gov.uk/universal-credit/eligibility

Checked against GOV.UK on 6 October 2026

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