Universal Credit Capital & Savings Rules
Capital and savings affect your Universal Credit entitlement based on strict thresholds. Here's how to calculate your position:
Key Capital Thresholds
| Capital Amount | Impact on UC |
|---|---|
| £0 - £6,000 | No reduction in payments |
| £6,001 - £16,000 | Payments reduced by 1% monthly (taper) |
| Over £16,000 | Full Universal Credit no longer payable |
What Counts as Capital?
- Savings accounts and cash
- Investments (shares, bonds)
- Property (excluding main home)
- Business assets
- Inheritance or lump sum payments
Important: Capital excludes your main residence, personal possessions under £1,000, and certain trust funds.
Calculating Your Position
Use our Universal Credit Calculator to input your savings and see how they affect your payment. The calculator automatically applies the 55% taper rate for amounts between £6k-£16k.
Need help? Explore our full Universal Credit guides for detailed explanations of housing costs, work allowances, and childcare support.