Universal Credit

Department for Work and Pensions written question – answered on 26th May 2022.

Alert me about debates like this

Photo of Stephen Timms Stephen Timms Chair, Work and Pensions Committee, Chair, Work and Pensions Committee

To ask the Secretary of State for Work and Pensions, whether tax credit recipients who have more than £16,000 in savings will lose all their support on being migrated to Universal Credit after the one year grace period, or whether they will be entitled to further transitional protection.

Photo of David Rutley David Rutley Assistant Whip (HM Treasury), The Parliamentary Under-Secretary of State for Work and Pensions

Tax Credit claimants will have any capital they hold above £16,000 disregard for up to 12 months once moved to Universal Credit as part of the managed migration process. This means that the normal rules for the treatment of capital, that would usually prevent them claiming UC, will not be applied during this period.

Normal UC rules for capital will still be applied to the capital they hold between £6,001 and £16,000. If their capital falls to £16,000 or below during the 12 months, then the disregard is not re-applied, should their capital rise above £16,000 again.

After 12 months, the disregard on tax credit claimants’ income that permits them to claim UC if their capital exceeds £16,000 will cease to apply and, like all claimants with capital over £16,000, they will not be entitled to Universal Credit.

Does this answer the above question?

Yes1 person thinks so

No0 people think not

Would you like to ask a question like this yourself? Use our Freedom of Information site.