A new petition is calling on the Department for Work and Pensions (DWP) to increase the capital limits for benefits claimants, proposing that the current thresholds of £6,000 and £16,000 be raised to around £10,700 and £28,500 respectively, to reflect inflation since they were set in 2006. The petition, hosted on the Labour Party government petition website, also calls for automatic annual uprating and higher thresholds for joint claims.
Petition demands inflation-linked capital thresholds
The petition states: "We ask the Government to increase the £6,000 and £16,000 capital thresholds to the value these had in real-terms when they were set in 2006; introduce automatic annual uprating to maintain their value; and set proportionately higher capital thresholds for joint claims than for single claimants."
Had the capital thresholds risen with inflation, the £6,000 lower threshold would now be approximately £10,700, while the £16,000 upper limit would have grown to £28,500. These figures represent the real-terms value of the original limits, which have remained unchanged for two decades.
Impact on claimants and joint claims
Universal Credit reduces support when savings exceed £6,000, and claims are closed entirely when savings exceed £16,000. These limits, set in 2006, apply to both single and joint claims. The petition argues that restoring the limits' original real-terms value could allow claimants to build financial resilience. It also highlights that joint claims should have higher limits to reflect that partners may not have access to each other's savings, and to reduce barriers for those experiencing financial abuse.
The petition is open for signatures until 17 February 2027. If it reaches 10,000 signatures, the government will respond. If it reaches 100,000 signatures, it will be considered for debate in Parliament.
Definition of savings for means test
The means test for benefits includes a wide range of assets. According to the DWP's definition, savings include cash, money in bank or building society accounts (including current accounts that don't pay interest), and any income in your account, such as earnings, if it is not spent by the end of the assessment period after the one it's received in. Also included are funds in a Tax Free Childcare account, for which 80% of the value is counted.
Other assets counted include National Savings accounts and certificates, income bonds, stocks and shares, and property other than your own home. Premium Bonds, lump sums taken from a pension fund, and lump sum payments on finishing work, such as redundancy pay or employment tribunal awards, also count as savings.
