What is capital?

Capital is any financial asset you own that can affect how much Universal Credit you can get.

Capital can include:

• savings
• investments
• property (other than your home)
• lump-sum payments

The capital limits

Any capital you have under £6,000 is ignored.

Any capital you have between £6,000 and £16,000 is treated as if it gives you a monthly income (often called ‘tariff income’). For every £250 (or part of £250) over £6,000, £4.35 is added to your monthly income when your Universal Credit is worked out.

Example

If you have £6,500 in a savings account, £6,000 of it will be ignored and the other £500 will be treated as giving you a monthly income of £8.70 (£4.35 x 2).

If you live with a partner

Your partner’s capital will be taken into account when your Universal Credit entitlement is worked out.

This applies whether you make a joint claim or have to claim as a single person while living as part of a couple.