Exact amount Universal Credit claimants can have in savings before payments stop
If you claim Universal Credit, the Department for Work and Pensions (DWP) may reduce or stop your payments if you have over a certain amount in savings. But how much exactly can you have saved?
Universal Credit is claimed by more than seven million people in the UK. If you have over £6,000 in money, savings and investments, your benefit will be reduced by £4.35 for every £250 you have between £6,000 and £16,000.
If the amount you have saved doesn't add up exactly to £250, but is over the threshold, another £4.35 is deducted from your Universal Credit.
For example, if you have £6,300 in savings, the first £6,000 would not be subject to any deductions, but the other £300 would see your payments deducted by £8.70.
This would be £4.35 deduced for the first £250, then another £4.35 for the remaining £50 that makes up the £300. These figures apply if you're a single claimant, or claiming as part of a couple.
You are normally not eligible for Universal Credit if you have more than £16,000 in savings. If you claim Tax Credits and you've been asked to move to Universal Credit, you may still be able to get Universal Credit for up to a year if you have more than £16,000.
Universal Credit is made up of a standard allowance, which is the basic amount you get before any additional elements - for example, if you have children or are unable to work due to illness - or any deductions are taken into account.
If you work, there is a taper rate which reduces your maximum Universal Credit payment as your earnings increase. The taper rate is 55% which means 55p is deducted from your maximum Universal Credit payment for every £1 you earn.
Some people get a "work allowance" which is a set amount you can earn before your Universal Credit is reduced. The "work allowance" is worth £411 a month if you also receive help with housing costs, and £684 a month if you don't.
Universal Credit - how much you get
Here is how much the different elements of Universal Credit are worth:
Standard allowance
Single under 25: £316.98 a month
Single 25 or over: £400.14 a month
Joint claimants both under 25: £497.55 a month
Joint claimants, one or both 25 or over: £628.10 a month
Child element
First child born before April 6, 2017: £339 a month
First child born on or after April 6, 2017 or second child and subsequent child: £292.81 a month
Disabled child element lower rate: £158.76 a month
Disabled child higher rate: £495.87 a month
Limited capability for work
Carer element
£201.68 a month
Work allowance
Higher work allowance (no housing amount): £684 a month
Lower work allowance (with housing amount): £411 a month
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For example: Glasgow pays £135 for summer holidays per eligible child: Wales and Northern Ireland also run holiday support schemes via schools and councils – check with your local authority. Five key changes to PIP & Universal Credit as Labour's benefits crackdown unveiled 3. Warm Home Discount – Savings: £150 credit Eligible low-income households can get £150 off electricity bills automatically between October and March. You usually don't need to apply – energy suppliers apply the discount directly if you qualify. If you're on UC and meet your supplier's rules (especially if your home is classed as "energy inefficient"), the discount will appear as a credit on your bill. Check eligibility at 4. Discounted broadband and mobile – Savings: save up to £196.68 Social tariffs offer cheap broadband to people on benefits. Some of the cheapest include: Virgin Media Essentials: £12.50/month – save £137.88/year vs regular Virgin package. BT Home Essentials: £15/month for fibre + calls. 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Council tax reduction – Savings: save up to £2,280 If you receive Universal Credit, you can apply for a council tax reduction of up to 100%. Every local authority sets its own rules, but many reduce council tax significantly for low-income households. If you live alone, you can also get a single person discount of 25%. For example: In Manchester, households on UC can get up to 100% off their council tax. Apply at Bristol offers up to 90% for most working-age households on benefits. More info at The average Band D council tax in England for 2025-26 is now £2,280, so a full reduction is worth that amount annually. 7. Help with water bills – Savings: save hundreds off your annual bill Water companies offer social tariffs or capped rates for those on UC and similar benefits. These schemes vary by supplier. For example: Affinity Water caps bills at £119.50/year for eligible households. See United Utilities offers up to 50% off for households with high usage or medical needs. More at According to Discover Water, the average water bill in England and Wales has risen to £603 in 2025. Switching to a capped or social tariff could save you hundreds of pounds depending on your supplier and usage. 8. Energy grants – Savings: up to £1,500 Several energy suppliers offer grants to help customers on low incomes clear energy debts or cover bills. For example: British Gas Energy Trust offers grants up to £1,500 even if you're not a British Gas customer. Apply at Next Energy Fund provides help with white goods and bill support. Visit You'll usually need to show proof of income, provide meter readings, and explain your situation. These grants don't need to be repaid. 9. Free prescriptions and dental care – Savings: variable savings Universal Credit claimants may be entitled to free NHS prescriptions, dental treatment, eye tests and help with health costs. You'll qualify if: You're single and earn under £435/month Or your household earns under £935/month and gets the child element of UC or has limited capability for work These savings can quickly add up: NHS prescriptions in England cost £9.90 each A standard NHS dental check-up is £25.80 10. Help to Save – Earn up to £300 a year This government-backed savings account is designed to encourage low-income households to build a financial cushion. If you're on Universal Credit and meet the eligibility requirements, you can open a Help to Save account and get a 50% bonus on savings. You can save between £1 and £50 each month, and at the end of two years, you'll receive a bonus worth half of the highest balance you've saved. You can continue saving for up to four years, earning a maximum total bonus of £1,200 if you save the full amount every month. Payments can be stopped and restarted without penalty You can withdraw money if needed, but it may reduce your bonus Apply at 11. School uniform grants – Savings: up to £200 Buying new uniforms can be a major back-to-school expense. Fortunately, some local authorities offer school uniform grants to help cover the cost. These grants are often available if your child is eligible for free school meals and you're on Universal Credit. Examples include: City of London: £160 for secondary school pupils. Apply at Sefton Council: £45 for primary and £70 for secondary. See Wales: The Pupil Development Grant offers £200 to eligible families. More info at Grants are often paid as vouchers, bank transfers, or reimbursements. Deadlines and application processes vary, so check with your local authority. 12. Free or discounted travel – Savings: up to 50% off Help with travel costs is available in several forms if you're on Universal Credit and looking for work or studying: Jobcentre Plus Travel Discount Card: Offers up to 50% off rail fares. Available to jobseekers who have been claiming UC or JSA for at least 13 weeks (or longer depending on age). More info at 16–17 Saver Card: Reduces fares by 50% for young people. Apply at Student Oyster Photocard: Offers 30% off travelcards and bus passes in London. See Note: Eligibility criteria and application processes vary by scheme. Some discounts depend on your age or how long you've been claiming UC. Some councils also offer additional support, for example, Derbyshire County Council provides bus travel support through its Wheels to Work scheme. 13. Flexible Support Fund – Savings: no official cap Administered by your Jobcentre, this discretionary fund can help cover work-related expenses to support you into employment. Unlike Universal Credit, this isn't a fixed payment and is granted based on individual need. You might be able to get: Up to £150 for tools, uniforms, or work clothing Travel costs to interviews or training Short-term childcare support For example, one claimant in Leeds received £120 to cover train tickets for job interviews. To apply, speak directly to your work coach, who can authorise support. 14. Maternity grants – Savings: £500 per child The Sure Start Maternity Grant is a one-off tax-free payment to help with the cost of a new baby. You don't have to repay it, and it won't affect other benefits. You'll get £500 if: It's your first child You're expecting twins or more, and already have children Applications open from 11 weeks before the due date until 6 months after birth. You must be on Universal Credit and not already receiving other maternity payments. Download the SF100 form at and send it by post. 15. Healthy Start vouchers – Savings: up to £442/year Eligible parents can receive prepaid cards that are topped up every four weeks, helping you buy healthy foods and milk. It's designed for pregnant women and parents of children under four. £4.25/week if pregnant (from week 10) £8.50/week for children under 1 £4.25/week for kids aged 1–4 In a child's first year, this adds up to £442, and about £221 per year after that. You're eligible if you're on Universal Credit with earnings below £408/month. Apply online at 16. Funeral expenses payment – Savings: up to £1,000 If you're arranging a funeral and receive UC, you might qualify for this payment to cover necessary costs. This payment is usually made to the funeral director. You can get up to £1,000 for: Flowers Funeral director's fees Travel costs Burial or cremation fees may also be covered separately. Payments depend on your relationship with the deceased and other contributions (e.g. from insurance). Find out more at 17. Legal aid – Savings: varies by case Legal aid can cover the cost of advice or representation for those facing serious legal issues. If you're on Universal Credit, you may qualify if your case meets the criteria. Support is available for: Domestic violence and child protection Housing or eviction cases Discrimination Immigration or asylum matters You may have to contribute towards costs depending on your income or assets. Check eligibility at 18. Childcare support – Savings: up to £1,769/month If you're working at least 16 hours/week and on UC, you can claim back 85% of childcare costs: £1,031.88 for one child £1,768.94 for two or more children The money is paid after you've submitted evidence of payment each month. There are often delays, so it's important to budget carefully or ask providers if they'll accept delayed payment. Apply through your UC account at 19. Free childcare hours (England only) – Savings: up to £7,500 From September 2024, parents of 2-year-olds in working families can access 15 free hours of childcare per week. From September 2025, this extends to 30 hours for children from nine months old. To be eligible: Both parents must be working (or one, in single-parent households) You must earn at least £183/week and under £100,000/year The Government says this will save families an average of £7,500 a year. More details at 20. Discounted glasses and eye tests – Savings: up to £233.56 NHS optical support includes: Free eye tests every two years Vouchers for glasses or lenses worth between £42.40 and £233.56 depending on your prescription Some opticians apply the discount automatically if you show your UC award letter. Check the NHS guide at
