If your capital is between the lower and upper limits, it is treated as generating a monthly income, ‘assumed income’, of £4.35 for each £250 (or part of £250) above the lower limit of £6,000. For instance, if you have capital of £6,300, it is treated as generating a monthly income of £8.70. Each time your capital moves into the next block of £250 (even by as little as one penny) an additional £4.35 a month is added to the assumed income. This is then added to your other income when calculating your universal credit award.

If assumed income is included in your assessment, let the DWP know if the amount of your capital changes. If your capital drops to the next assumed income block and you have not told the DWP, you will be getting too little universal credit. If your capital increases to the next assumed income block and you have not told the DWP, you will have been overpaid universal credit. Watch out for the ‘notional capital’ rule (see 28 below ). Ke