People who’ve been rejected for Universal Credit in the past because they had too much in their savings are being urged to reapply now.
In the latest MoneySavingExpert newsletter, Martin Lewis has said the Government has confirmed people can reapply and ask to be reassessed.
Many people have had to dip into their savings during the pandemic. If you have the MoneySavingExpert founder says you may now find yourself below the thresholds that makes you eligible for Universal Credit.
He explains the amount of money you’re entitled to through Universal Credit is reduced if you have more than £6,000 in savings.
If you have more than £16,000 put aside, you are unable to claim anything.
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Under the current eligibility rules, any capital or savings you have between £6,000 and £16,000 is treated as if you have a monthly income of £4.35 for each £250, or part of £250.
So - as explained by charity Turn2Us - if you have £6,300 in a savings account, £6,000 of it will be ignored and the other £300 will be treated as giving you a monthly income of £8.70.]
Writing in the latest MoneySavingExpert newsletter, Martin said: “If you're eligible for Universal Credit, but you or your partner has £6,000+ in savings, your award is reduced. By £16,000+ you get nowt.
“This has impacted many during the pandemic, so they've used their savings. If so, the Govt has confirmed to us you can reapply/ask to be reassessed, based on the new lower savings amount.”
Who is eligible for Universal Credit and how do I apply?
If you think you're entitled, you can apply for Universal Credit online via the Gov.uk website.
You might be able to claim Universal Credit if:
You’re out of work or on a low income
You’re aged 18 or over (there are some exceptions if you’re 16 or 17)
You or your partner are under state pension age
You and your partner have less than £16,000 in savings
You live in the UK
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