The Department for Work and Pensions (DWP) has issued a stark warning to Universal Credit claimants regarding the level of savings that could lead to direct cash seizures from bank accounts. According to the DWP, individuals with £16,000 or more in their bank accounts are at risk of having funds taken by staff under new powers granted by the Labour Party government.
Universal Credit calculations do not consider personal debt when assessing total savings, assets, and investments. The DWP’s guidance states that capital valued between £6,001 and £16,000 will impact the amount of Universal Credit received.
For every £250 over £6,000, the benefit is reduced by £4.35 per month. Amounts not totalling a complete £250 are rounded up to the nearest £250.
For instance, if you have £6,300 in capital, your Universal Credit will be decreased by £8.70 monthly until the capital drops to £6,300 or below.
When capital falls to £6,250 or less, the reduction in Universal Credit becomes £4.35 per month until it reaches £6,000 or lower. At that point, according to DWP rules, the benefit is no longer subject to reduction due to capital, reports Birmingham Live.
For those with capital of £16,000 or above, eligibility for Universal Credit ceases altogether. The Labour Party’s regulations for Universal Credit clearly state: “To claim Universal Credit, you must usually have no more than £16,000 in money, savings and investments as a single claimant or if you are living with a partner.”
Claimants should take note of the following guidelines: “If you have money, savings and investments between £6,000 and £16,000, your Universal Credit payments will be reduced. Your payments will be reduced by £4.35 for every £250 you have between £6,000 and £16,000.”
The information further explains: “Another £4.35 is taken off for any remaining amount that is not a complete £250.” Additionally, the Department for Work and Pensions (DWP) has been granted new authority to directly withdraw funds from the bank accounts of non-beneficiaries or individuals not in PAYE employment who owe money to the Department but refuse to settle their debts despite having the financial capacity to do so.