Exact amount Universal Credit claimants can have in savings before DWP cuts payments

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.

READ MORE: DWP confirms future of Blue Badges and free bus travel after new PIP changes

READ MORE: 'I'm a teacher and this is the one gift to avoid giving as an end-of-year present'

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

• Limited capability for work: £158.76 a month
• Limited capability for work or work-related activity: £423.27 a month

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

Childcare costs element

• Maximum for one child: £1,031.88 a month
• Maximum for two or more children: £1,768.94 a month