Overview

• Savings thresholds now stand at £16,000 for Universal Credit, Income-related Employment and Support Allowance and Housing Benefit, and £10,000 for Pension Credit with council tax support limits varying by local authority
• DWP counts assets including bank and National Savings & Investments account balances, premium bonds, stocks and shares, inherited wealth, non-primary property values and pensions in drawdown towards capital tests
• Certain lump sums such as redundancy payments and compensation awards count as savings while Infected Blood Compensation Scheme payouts are specifically excluded
• Exempt assets — personal possessions, untapped pension pots, prepaid funeral plans, unclaimed life insurance and insurance claims for repairs — do not affect eligibility, and deliberate depletion of savings triggers notional capital assessments
• Under Universal Credit rules, payments taper by £4.35 for every £250 saved between £6,000 and £16,000 and cease after one year if savings remain above £16,000