The Department for Work and Pensions (DWP) is preparing to enhance monitoring of Universal Credit claimants who have savings ranging from \u00a36,000 to \u00a316,000. This will involve new checks on bank accounts and adjustments to benefit payments. <\/p>\n\n\n\n
According to the Manchester Evening News<\/a>, these steps are part of a broader initiative aimed at reducing fraud and error within the benefits system. The DWP\u2019s approach focuses on ensuring that payments reflect claimants\u2019 financial circumstances more accurately by applying reductions for those with higher savings. <\/p>\n\n\n\n Details about the full scope of these measures remain limited at this stage.<\/p>\n\n\n\n Under the current eligibility rules for Universal Credit<\/a>, claimants must not have savings or investments exceeding \u00a316,000. However, those with savings between \u00a36,000 and \u00a316,000 will experience a gradual reduction in their benefit payments. <\/p>\n\n\n\n The reduction is precisely calculated at \u00a34.35 for every \u00a3250 or part thereof above the \u00a36,000 threshold. This means that even if the amount over \u00a36,000 is less than \u00a3250, a proportional deduction is applied.<\/p>\n\n\n\n For example, if a claimant has \u00a36,500 in savings, \u00a36,000 is disregarded, and the remaining \u00a3500 results in a reduction of \u00a38.70<\/strong> per month (calculated as two increments of \u00a34.35). <\/p>\n\n\n\n This figure is based on the DWP\u2019s assumption that every \u00a3250 in savings can generate a monthly income of \u00a34.35, which justifies reducing benefits accordingly.<\/p>\n\n\n\nNew Savings Threshold and Detailed Payment Reductions<\/h2>\n\n\n\n
Adjustments for Other Benefit Recipients<\/h2>\n\n\n\n