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.