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The Department of Work and Pensions (DWP) is set to conduct rigorous checks on claimants who it deems to have too much money in savings. Universal Credit claimants with more than £6,000 in their savings accounts will trigger checks by the DWP, which said it is working to crack down on “criminals who cheat the system”.
People usually cannot claim if they have more than £16,000 in savings, but those with more than £6,000 will be subject to checks and have their payments reduced. The Government’s rules state: “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.”
“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.”
The capital between £6,000 and £16,000 is treated as if it returns £4.35 for every £250 per month, regardless of whether it does or not.
Secretary of State for Work and Pensions, Liz Kendall, explained the DWP is looking to deliver stronger consequences for people who “cheat the system”.
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.
“Backed up by new and important safeguards including reporting mechanisms and independent oversight to ensure the powers are used proportionately and safely.”
Those on income-based JSA, income-related ESA, Income Support and Housing Benefit have £1 per week deducted from their benefits for every £250, or part of £250, of savings over £6,000. These benefits are normally paid into accounts every two weeks.
