Definition
Capital
Reviewed by BenefitCheck Editorial Team · Updated 18 June 2026
Money and assets Universal Credit counts towards the £6,000 and £16,000 thresholds — savings, ISAs, Premium Bonds, second properties.
In plain English
Capital is DWP's word for the savings and assets you hold. It includes cash in current accounts, savings accounts, ISAs, Premium Bonds, investments, and property you own that isn't your main home. It does not include the home you live in, most personal possessions, or pensions held in a registered scheme that you haven't drawn yet.
Why it matters
Universal Credit is means-tested against capital. Below £6,000 it has no effect. Between £6,000 and £16,000 you lose a little each month through tariff income. From £16,000 you do not qualify at all. Knowing exactly what counts — and what doesn't — is the single biggest determinant of whether UC is open to you.
Example
A couple have £4,000 in a joint current account, £3,000 in Premium Bonds, an ISA with £2,500, and a car worth £6,000. The car is a personal possession, not capital. Total capital is £9,500 — between the thresholds, so UC is open but reduced.
What people often confuse it with
Income
Income is money coming in (wages, pensions); capital is the money you hold. They are treated separately.
Your home
The home you live in is disregarded. Only second properties count.
Pensions you haven't drawn
Undrawn workplace and personal pensions are ignored, but once you start drawing them they become either income or capital.
Related definitions
Tariff income
An assumed monthly income Universal Credit adds for every £250 of savings you hold between £6,000 and £16,000.
Deprivation of capital
Where DWP decides you deliberately reduced your savings to qualify for benefits and treats the money as still yours.
Joint claim
A single Universal Credit claim made together by a couple who live in the same household.