Exact amount Universal Credit claimants can have in savings before DWP deductions

Universal Credit is claimed by over six million individuals across the UK. However, if you have savings or investments, the Department for Work and Pensions (DWP) can decrease your Universal Credit payments or halt your claim entirely.

If your cash, savings, and investments exceed £6,000, your benefit will be reduced by £4.35 for every £250 between £6,000 and £16,000. An additional £4.35 is deducted even if the extra amount saved falls short of £250.

For instance, if you have £6,300 in savings, no deductions are made on the first £6,000, but the remaining £300 would result in a deduction of £8.70 from your payments.

These figures apply whether you're a single claimant or part of a couple. Generally, you won't qualify for Universal Credit if your savings or investments surpass £16,000.

However, if you're claiming Tax Credits and have been asked to switch to Universal Credit, you may still be eligible for Universal Credit for up to a year, even if you have more than £16,000, reports the Mirror.

Universal Credit consists of a standard allowance, which is the basic amount you receive before any additional elements—for example, if you have children or are unable to work due to illness—or any deductions are considered.

If you're employed, there's a taper rate that reduces your maximum Universal Credit payment as your earnings rise. The taper rate stands at 55%, meaning 55p is deducted from your maximum Universal Credit payment for every £1 you earn.

A "work allowance" is something received by some individuals, which is a set income threshold they can earn before their Universal Credit begins to diminish. Come April, Universal Credit payments are set to increase by 1.7%.

Here's a breakdown of the payment boost you could expect,