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Long-neglected rules governing capital means-testing in Universal Credit (UC) are undermining other Government policies aimed at encouraging lower-income households to accrue savings, according to new research from the Resolution Foundation published on Thursday 24 April 2025. The report Saving penalties - part of a partnership with abrdn Financial Fairness Trust – notes that the current capital thresholds, which have been frozen in cash terms since 2006, mean that a claimant's UC entitlement is tapered away if they have savings above £6,000, with entitlement ended completely if savings go a penny over £16,000. [Read Full Article] |
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