Universal Credit warning as inheritance & other windfalls may impact payment

3 mins read


While a large windfall is an idealist dream for many, actually having one could be at the detriment of one’s financial situation, but that should not deter them from reporting it. Whether it’s cash, property or investments, inheritance can greatly impact how much one receives from the DWP, here’s how to work it out.

The type of benefits one claims and how much they have in savings before the windfall will also have an effect on the end result. 

Regardless of whether it will affect one’s benefits, a change of circumstance such as receiving a windfall should be reported to the relevant benefits office. 

Not doing so could see people being fined or receiving overpaid benefits and having to pay it back.  

Means-tested benefits generally depend on one’s income and savings to decide their rates and if they are eligible for the benefit at all. 



For Universal Credit specifically, every £250 one has over £6,000 counts as £4.35 of monthly income. 

Income-based JSA, Income-related ESA, Income Support and Housing benefit counts every £250 over £6,000 as £1 of weekly income. 

However, it should be noted that for Housing Benefit there are different rules for people over the state pension age.

They can have up to £10,000 in savings before their claim is affected, with every £500 over this counting as £1 of weekly income.

Pension Credit has no upper limit of savings where the benefit will end, but only the first £10,000 will not impact the benefit with every £500 after that counting as £1 of income. 


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