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Universal Credit and savings: What you need to know

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With unemployment set to peak next year and many facing redundancy now, Universal Credit applications are expected to rise. Here’s what you need to know if you have savings.

More than five million people are now in receipt of Universal Credit after the benefit saw a spike in applicants amid the coronavirus pandemic.

Those on low incomes, people who cannot work or are out of work can claim Universal Credit with the standard allowance for single people aged 25 and over currently standing at £409.89 per month.

Generally if you and your partner have less than £16,000 in savings, you may be eligible for Universal Credit.

Kay Ingram, director of public policy at financial planning group LEBC said those who have savings may see their entitlement to the benefit reduced.

Savings under £6,000 are disregarded, but between this amount and £16,000, each £250 of savings reduces the credit by £4.35 per month. Those with savings may however still be eligible to claim.

Below, Ingram shares six tips to help those with savings protect their eligibility to claim Universal Credit:

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