The Department for Work and Pensions is set to check the bank accounts of Universal Credit claimants who have savings over £6,000 – it has been warned this week
Claimants of Universal Credit have been warned as the Department for Work and Pensions (DWP) is gearing up to conduct bank account checks when balances reach a mere £6,000. Under the DWP’s rules, to qualify for Universal Credit payments, an individual or couple must not possess over £16,000 in savings.
The official guidance outlines: “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.” It explains that having between £6,000 and £16,000 in savings and investments will lead to scaled-down Universal Credit payments.
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It specifies: “If you have money, savings and investments between £6,000 and £16,000, your Universal Credit payments will be reduced. Your payments will be reduced by £4.35 for every £250 you have between £6,000 and £16,000. Another £4.35 is taken off for any remaining amount that is not a complete £250.”
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.”
She also highlighted new protective measures, saying: “Backed up by new and important safeguards including reporting mechanisms and independent oversight to ensure the powers are used proportionately and safely.”
For those with capital between £6,000 and £16,000, such amounts are treated as though they yield a monthly income of £4.35 for each £250 or part of £250, even if there is no actual income generated, reports Birmingham Live.
If you have £6,300 in a savings account, £6,000 of it will be disregarded and the remaining £300 will be considered as providing you with a monthly income of £8.70.
This amount is then subtracted from your monthly Universal Credit payment.
For those receiving income-based JSA, income-related ESA, Income Support and Housing Benefit, £1 per week is deducted from their benefits for every £250, or part of £250, of savings over £6,000. These benefits are typically paid into accounts fortnightly.
