The Department for Work and Pensions (DWP) has issued a stark warning to individuals with savings exceeding £16,000, as new powers granted to the Labour Party government may allow for the direct seizure of funds from their bank accounts. The DWP has highlighted that capital amounts between £6,001 and £16,000 will directly impact Universal Credit payments, leading to reductions for every £250 increment above the £6,000 threshold. This development comes with concerns about the potential impact on individuals who may not be aware of the implications of their savings on their benefit entitlement.
The Department for Work and Pensions ( DWP ) has revealed a crucial savings threshold that could lead to the direct seizure of funds from claimants' bank accounts . This alert specifically targets individuals with £16,000 or more in savings, as new powers bestowed upon the Labour Party government may put them at risk of having their assets taken.
While debts are not factored into the calculation of total savings, assets, and investments for Universal Credit, capital amounts between £6,001 and £16,000 will directly impact payments according to DWP guidelines. For every £250 exceeding £6,000, Universal Credit payments will be reduced by £4.35 per month. Crucially, any uneven capital amount is rounded to the nearest £250 increment. For example, if someone possesses £6,300 in savings, their Universal Credit will be reduced by £8.70 per month until it falls below £6,300. When the capital reaches £6,250 or less, the deduction becomes £4.35 per month, continuing until it reaches £6,000 or under. Importantly, if savings remain below £6,000, Universal Credit payments will remain unaffected. However, claimants with capital valued at £16,000 or more are ineligible for Universal Credit. The Universal Credit regulations, established by the Labour Party, 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.' These guidelines further instruct claimants regarding their capital: '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 guidance concludes with the details: 'Another £4.35 is taken off for any remaining amount that is not a complete £250.' In a significant development, new powers granted to the DWP will enable the department to directly reclaim funds from the bank accounts of individuals who are neither receiving benefits nor employed under the PAYE system but owe money to the Department and refuse to pay despite having the means to do so
Universal Credit DWP Savings Bank Accounts Labour Party Government Benefit Seizures Capital Threshold
United Kingdom Latest News, United Kingdom Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Dunelm's £16 heater 'just what shoppers need' to avoid being coldThe Flat Fan Heater is compact but that doesn't mean it's not powerful enough to warm up a room 'in minutes'
Read more »
Dunelm's £16 Flat Fan Heater Saves Customers Money and Keeps Them Warm This WinterA compact and powerful flat fan heater sold by Dunelm has become a winter essential for customers looking to save on heating bills and stay cozy during the cold snap. The heater, priced at just £16, is praised for its efficiency and cost-effectiveness, with many customers reporting that it heats rooms quickly and uses minimal electricity. The portable device features two heat settings and a safety cut-off for added peace of mind.
Read more »
Weight loss £16 hula hoop helping people lose 'inches off their waist'One shopper lost four inches off their waist and said they no longer have any belly fat thanks to the £16 fitness accessory
Read more »
Mango's £16 Clutch Bag Looks Just Like a £410 Vivienne Westwood OneThis bargain Mango clutch bag is a stylish and affordable alternative to a high-end designer bag.
Read more »
I'm a makeup artist and this £16 brow tint is my secret weaponA tinted brow gel is the best product creating a natural effect
Read more »
Save £16 on a Bush Convector Heater with TopCashbackThe Met Office issues fresh weather warnings for heavy snow and freezing rain in Britain. Millions are at risk from cold temperatures indoors. This article highlights a deal from Argos for a Bush 2kW Convector Heater and how to get it for just £3.08 using TopCashback.
Read more »