The DWP/Benefits Savings Limit

BootBull

For many years now, the savings limit has been £16,000 with a reduction in benefits for savings over £6,000. To my recollection, this has been the case since Universal Credit was first introduced.
£6,000 was worth a lot more in 2014 than it is now, especially if, as I’ve seen in another thread, you’re saving up for surgery that the NHS says you need but isn’t offering. I know someone who was refused surgery because he was ‘too young’ even though the NHS doctor said it was necessary. The chap was not on benefits but still had to save for a £40,000 operation. Thankfully his parents helped. Sadly, for most of us, the long wait is all we have.
Given, also, the huge changes in the Motability scheme necessitating larger savings pots for Advance Payments every three years, it just feels like the stagnant savings limit is a punishment on the less able. I know the UC rules say certain money can be disregarded but if you save for the Motability car they’ll be watching every single penny you have for up to three years. That’s an awful lot of unnecessary stress to put someone through.

Spoonie_Turtle

I'm not getting into discussion but just found it of interest that the limit has been £16,000 since at least 2006 (based on JSA).

Altior

This thread is probably over the red line of discussing benefits policy.

A factual stat might be of some use for context. As of last year, 39% of UK adults had only £1,000 or less in savings.

TELLIT01

As Spoonie says, savings limit hasn't changed in at least 20 years, and is unlikely to do so from what I've seen. I worked on ESA from 2008, and the limits were the same across all Income Related benefits. The disregard for pension on income on Contributions based benefits (ESA and JSA) have likewise remained frozen.

Muttleythefrog

Given the current political climate I would not expect the limits to increase any time soon. Any arguments they should increase becomes redundant and inappropriate for this section of MSE. But I certainly have sympathy where the limits pose restrictions on abilities to change circumstances for better and potentially lowering benefits demand longer term.

Robbie64

Increases in capital limits seems to be almost a once in a generation thing. When I started working at the forerunner of the DWP back in 1985 the capital limit for Supplementary Benefit (the main means tested benefit) was £2,500. I think it's only changed two or three times since then. 1988 - introduction of Income Support, £3,000 lower limit. £6,000 cut off, 1990 an increase to £8,000 for the upper limit (£3,000 lower limit remained the same) and then 2006 when the lower and upper limits doubled.

The capital limits for pensioners has been more generous, with the current capital rule being £10,000 lower limit with no upper limit for Pension Credit.

born_again

TBH, the highest car AP on Motability for a car is just under £8k ID 5 top of the range, but lower spec of same car are £3.5K

While WAV can go to £22K, most people that get them, are applying & receiving for a grant towards the cost. As well as possibly not on UC.