Universal credit claimants with £6,000 could have bank account checked

People claiming universal credit could have their bank accounts checked by the government if they have more than £6,000. 
 
Under new proposals, the Department for Work and Pensions (DWP) will have the power to ask for information about claimants from banks and financial institutions to make sure they’re entitled to support. 
 
People with between £6,000 and £16,000 in savings would then have their benefits reduced. 

What will the new system look like? 

If you have more than £6,000 in cash, savings and investments, your benefit payment could be cut by £4.35 for every £250 you have between £6,000 and £16,000. 
 
Another £4.35 will be taken off for any remaining amount that isn’t a complete £250. 
 
So, for example:  
 
If you’re claiming universal credit and have £6,300 in savings, you’ll be £300 over the £6,000 limit. 
 
So £4.35 would be deducted from your universal credit payment for the first £250 and another £4.35 for the other £50. 
 
The rules will be slightly different for people claiming: 
 
•    income-based jobseeker's allowance (JSA) 
•    income-related employment and support allowance (ESA) 
•    income support  
•    housing benefit 
 
These people will have their benefits cut by £1 a week for every £250 in savings above the £6,000 threshold. 

Government aiming to cut benefits bill 

This is part of a wider effort by the government to reduce the welfare budget by £5bn by 2030. 
 
Last month, ministers announced reforms including: 
 
•    increasing the standard allowance of universal credit 
•    tightening eligibility criteria for personal independence payments (PIP) 
•    scrapping the work capability assessment in 2028 
•    not penalising people on benefits for trying out a new job 
•    reducing incapacity benefits for people under 22 
•    more frequent reassessments for PIP claimants 
•    merging JSA and ESA 
•    investing an extra £1bn in employment support