7. Savings and other capital
There are limits on the amount of savings and other capital you can have and still claim universal credit (UC). Some kinds of capital are not counted in the assessment. For details, see CPAG’s Welfare Benefits and Tax Credits Handbook (for subscribers). One-off, lump-sum payments of student income count as capital rather than income. This may include the care-experienced accommodation grant, and discretionary fund payments that are not paid regularly or by reference to a period.1Reg 46(1)(a) and (3) UC Regs You cannot get UC if your savings or other capital are above £16,000.
If your capital is £6,000 or less, it does not affect your UC at all.
If your capital is between £6,000.01 and £16,000, you are treated as though you have income from this capital of £4.35 a month for every £250 or part of £250 between these limits. For example, if you have savings of £6,525, your assumed income is £13.05 a month.