Universal Credit (UC) is a monthly payment from the Department for Work and Pensions (DWP) to help with living costs. It is for people on a low income, out of work, or unable to work.

How much savings you have affects whether you can get UC and how much you get. This article explains the savings rules and what DWP can find out about your bank accounts.

What is Universal Credit?

Issued by the Department for Work & Pensions (DWP), Universal Credit (UC) replaces six older "legacy" benefits with a single monthly payment. According to the House of Commons Library, DWP closed legacy benefits Income Support and income-based Jobseeker's Allowance on 31 March 2026.

For 2026/27, the monthly standard allowance is:

Extra amounts can be added, for example for children, housing costs or limited capability for work. Your earnings and savings can reduce the total.

Who can claim Universal Credit?

GOV.UK says that to claim UC you must usually:

• be aged 18 or over (there are some exceptions for 16 to 17 year olds)

• be under State Pension age

• live in the UK

• have £16,000 or less in money, savings and investments.

If you live with a partner, you claim jointly, and both your savings count.

How do savings affect Universal Credit?

It depends on your level of savings:

• £6,000 or less: Your savings don't affect your UC.

• £6,000.01 to £16,000: DWP assumes your savings produce a monthly income of £4.35 for every £250, or part of £250, above £6,000. This is deducted from your UC. For example, £6,500 in savings reduces UC by £8.70 a month, and £10,000 reduces it by £69.60 a month.

• Over £16,000: You usually cannot get Universal Credit if your countable capital is over £16,000. Some capital is disregarded, and temporary exceptions can apply when moving from tax credits following a Migration Notice.

Read more about the qualifying managed-migration exception alongside the thresholds at Gov.uk.

Can you claim Universal Credit if your savings go down?

You must report changes to your savings, investments and money through your UC online account, or call the UC helpline on 0800 328 5644. A change can affect your payment for the whole assessment period in which it happens, not just from the date you report it.

If you deliberately get rid of capital in order to get UC, or to get more UC, DWP can treat you as still having it. This is called "notional capital". Paying off a debt, or reasonable spending on goods or services, is not treated this way. DWP may ask for evidence of where the money went.

Can DWP check my savings account?

You must declare all your savings and investments accurately when you claim UC. Understating them can be treated as benefit fraud.

The Public Authorities (Fraud, Error and Recovery) Act 2025 gives DWP a power to send "eligibility verification notices" to banks and other financial institutions. Under a notice, a bank must search its own data and return limited information about accounts that match criteria set by DWP. The official Code of Practice gives this example: accounts that receive UC and hold more than £16,000. A notice cannot require bank statements or transaction information. The Code (published 14 May 2026) says the measure will start with a "Test and Learn" phase involving selected financial institutions.

Separately, since 1 January 2024 online platforms such as marketplaces and short-let sites have had to report details about some sellers to HMRC for tax purposes.

Can you open a savings account if you get Universal Credit?

Getting UC doesn't stop you opening a savings account; providers set their own eligibility criteria and may run identity and fraud checks. Note that your total savings and investments, including any interest, count towards the £6,000 and £16,000 limits.

Savings accounts don't usually involve a credit check, though providers set their own eligibility criteria and may carry out identity or fraud checks.

If you're interested in opening a savings account, take a look at our savings accounts guide. Interest rates vary by provider and change often.