If you’re saving money, the amount you have saved can affect the benefits you can claim.
If you’re under pension age, the first £6,000 of your savings and investments will not affect any of your benefits. If you are in a residential home, this amount increases to £10,000.
Which benefits can be affected?
The following benefits can be affected depending on your savings:
- Income Support
- Income based Job Seekers Allowance (JSA)
- Income based Employment and Support Allowance (ESA)
- Universal Credit
- Housing Benefit
- Council tax support
If you have more than £16,000 in savings, you will not be entitled to any of the above benefits. If you have between £6,000 and £16,000, every £250 is viewed as £1 per week in income. This means your benefits can be reduced.
Disability Living Allowance (DLA) and Personal Independence Payments (PIP) are not affected by income or savings.
For more information on how savings and investments are calculated, contact the Department for Work and Pensions or the Citizens Advice Bureau.