Savings limits in 2026/27
| Benefit | Ignored | Upper limit | Assumed income |
|---|---|---|---|
| Universal Credit | £6,000 | £16,000 | £4.35 a month per £250 |
| Pension Credit | £10,000 | None | £1 a week per £500 |
| Housing Benefit, pension age | £10,000 | £16,000 (none with guarantee credit) | £1 a week per £500 |
| Housing Benefit, working age; ESA, JSA, Income Support | £6,000 | £16,000 | £1 a week per £250 |
How this is calculated
The amount above the ignored level is divided into steps of £250 (or £500 for pension-age benefits), and any part step counts as a full one. Each step adds the assumed income shown in the table. That assumed income is then treated like any other income when your benefit is worked out.
Worked example
Lee claims Universal Credit and has £8,100 in savings. That is £2,100 over £6,000. £2,100 ÷ £250 = 8.4, which rounds up to 9 steps. 9 × £4.35 = £39.15 a month comes off Lee’s UC.
Common questions
How much savings can I have on Universal Credit?
Up to £16,000 between you and your partner. The first £6,000 is ignored. Between £6,000 and £16,000, UC assumes you get £4.35 a month for every £250 (or part of £250), and takes that off your award.
Is there a savings limit for Pension Credit?
No upper limit. The first £10,000 is ignored, and above that Pension Credit assumes £1 a week of income for every £500 or part of £500. You can have quite large savings and still get some Pension Credit if your income is low.
What counts as savings?
Cash, bank and building society accounts, ISAs, Premium Bonds, shares and property you do not live in. The home you live in, personal possessions, and arrears of some benefits for 12 months are ignored. Money set aside for a bill that is due, like a quarter’s rent, still counts until you pay it.
Can I give money away to get under the limit?
If you spend or give away money to get or increase benefit, the DWP can treat you as still having it. This is called deprivation of capital. Spending on normal living costs, paying off debts or necessary repairs is usually fine.