Benefits help: How much savings can you have on benefits?
Benefits have recently changed thanks to the coronavirus pandemic, as the Government asks people to stay indoors where possible. The Chancellor has released help for people who have recently found themselves without work and those already on benefits.
How much can benefits claimants have in savings?
Claiming benefits is reserved for those either in real financial difficulty or without jobs.
One of the qualifying factors for some benefits is the amount of savings a claimant has put away.
Money in a savings account, investment or shares can all impact someone’s application.
- Benefits help: How to claim benefits if unable to work
Savings and income impact the following means-tested benefits according to the money advice service:
Income-based Jobseekers Allowance
Income-related Employment and Support Allowance
- Housing Benefit
- Income Support
- Pension Credit
- Universal Credit
Claimants under state pension age claiming benefits can continue to claim benefits with £6,000 in savings.
The amount increases to £10,000 for those over the state pension age of 65.
If someone, or their partner, has £16,000 or more in savings they can’t claim any of the benefits.
People who have savings in between £6,000 and £16,000 will have a portion of their total amount treated as a monthly income.
Universal Credit: Change in circumstances can affect payments – INSIGHT
Universal Credit: Can you get your benefit payment early next month? – EXPLAINER
Universal Credit: What does coronavirus mean for Universal Credit? – EXPLAINER
- Job centres UK: Are job centres open? Can I still get benefits?
The Government will ignore the first £6,000 of someone’s savings, and treat each exceeding £250 as a monthly income of £4.25.
The total exceeding amount is then taken off the payout claimants receive per month.
For example, people with £6,500 in their savings would have £8.50 taken off their overall monthly payment.
Lump-sum or cash payments given to people claiming or thinking about claiming benefits also count as savings.
Benefits savings rules will not change in the Government’s new coronavirus aid plans, but the standard allowance will.
Chancellor Rishi Sunak will increase the standard allowance by £1,000.
The allowance will increase monthly for the following groups:
- Single, under 25: £251.77 to £256.05
- Single, 25 or over: £317.82 to £323.22
- Joint claiming couple under 25: £395.20 to £401.92
- Joint claiming couple one or both 25 or over: £498.89 to £507.37
Source: Read Full Article