Universal Credit: Coronavirus

(asked on 28th April 2020) - View Source

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, whether her Department has made an assessment of the potential merits of relaxing the savings rules that determine eligibility for and support from universal credit during the covid-19 outbreak in circumstances where the applicant can demonstrate those funds are required for pending tax bills.


Answered by
Will Quince Portrait
Will Quince
This question was answered on 12th May 2020

A key principle of UC is that it supports people who do not have assets available to meet their basic needs. While it is important to protect the incentive to save for claimants on low earnings, people with substantial capital can take responsibility for their own support. This is to ensure that we can maintain our focus on getting money to citizens who need it and safeguarding the most vulnerable.

If capital exceeds £16,000 there will be no entitlement to UC, unless the capital can be disregarded, for example personal injury compensation payments. Capital above £6,000 will reduce the amount of UC paid by £4.35 per month for every £250 of capital or part thereof.

If someone has money in their account that is to be used for business purposes, for example for paying tax, it will not be counted towards their capital, but they may be asked to prove that the money is for business purposes. People should make clear in their application the savings that are business assets, and note it in their online journal.

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