Navigating the Universal Credit system can be daunting, especially when life circumstances change. One of the most critical updates you may need to report is a change in your savings or capital. Whether you’ve received an inheritance, sold property, or simply saved more than expected, failing to report these changes accurately can lead to penalties or reduced benefits.
In today’s economic climate, where inflation and rising living costs dominate headlines, managing your finances while on Universal Credit is more important than ever. This guide will walk you through the process of reporting changes in savings or capital, why it matters, and how to avoid common pitfalls.
Universal Credit is a means-tested benefit, meaning your eligibility and payment amount depend on your financial situation. The Department for Work and Pensions (DWP) considers your savings and capital when calculating your entitlement.
If you have £6,000 or less in savings or capital, it won’t affect your Universal Credit. However, if you have:
- Between £6,000 and £16,000: Your payment may be reduced.
- Over £16,000: You’ll no longer qualify for Universal Credit (unless you’re in a couple and one partner is over State Pension age).
Given the current cost-of-living crisis, even small changes in savings can impact your benefits. For example, if you dip into emergency funds to cover rising energy bills, you must report this to avoid overpayments or sanctions.
The easiest way to report changes is through your online account:
- Visit the Universal Credit sign-in page.
- Enter your username and password.
- Navigate to the "Report a change" section.
Under "Changes in your circumstances," choose:
- Savings, investments, or property
- Money you’ve received (e.g., inheritance, windfall)
You’ll need to specify:
- The amount of savings or capital you now have.
- The source (e.g., sale of property, gifts, inheritance).
- The date the change occurred.
The DWP may ask for proof, such as:
- Bank statements.
- Property sale agreements.
- Legal documents (e.g., inheritance paperwork).
Once submitted, you’ll receive a notification in your journal. The DWP will review your update and adjust your payments if necessary.
Some claimants mistakenly believe only cash savings count. However, the DWP also considers:
- Stocks and shares.
- Cryptocurrency holdings (a growing concern in digital finance).
- Property (other than your primary home).
Failing to report changes within one month can lead to:
- Overpayments (which you’ll have to repay).
- Penalties or sanctions.
In today’s fast-moving financial world, where sudden windfalls (e.g., crypto gains) or losses (e.g., market crashes) can happen overnight, timely reporting is crucial.
With inflation at record highs, many Britons are dipping into savings to cover essentials. If your savings drop below £6,000, reporting this could increase your Universal Credit payment.
Cryptocurrencies like Bitcoin are now part of many investment portfolios. The DWP treats crypto as capital, so if your holdings exceed £6,000, you must declare them.
If you’ve sold a second property or received equity from a house sale, this counts as capital. Given the unstable housing market, such changes should be reported immediately.
By staying proactive, you can ensure your Universal Credit payments reflect your true financial situation—helping you navigate these challenging economic times with confidence.
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Author: Credit Hero Score
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