Universal Credit: Means testing; are they being mean?

Lord Freud  released the following statement back in December 2010

“The universal credit will replace  benefits, along with child tax credit and working tax credit for working-age households, and the £16,000 savings threshold would extend to all households eligible for universal credit.


We have committed to providing protection to ensure that no households in receipt of the relevant benefits and tax credits at the point of transition will lose in cash terms as a direct result of the introduction of universal credit. New cases or those whose circumstances change will be subject to the £16,000 threshold.”


What are your views on means testing for the Universal Credit? Should there be means testing? Are the means testing levels of savings fair? Does this discourage people from saving?



  1. Tony says:

    Same old Tory Policies which penalise the prudent savers.What is the point in saving for the future when at the first sign of trouble ie sickness or unemployment, any reasonable saved amount means no help ? I am not against any interest made counting as taxable income and a reduction being made for this amount,but really to deduct £1 a week or £52 a year on every £250 over £6000 is ridiculous.If I knew how to get 20%+ pa nett return on savings, I would be a financial genius and not be in need of any benefits at all !

    • Jamie Brace says:

      Very true,Governments tell us we should save what we can for our futures,and now we see why! It’s so we cant get any benefits during hard times out of work or travelling many miles to low paid part time insecure work.Penalise the prudent and give all to those who drink and smoke their money-Tory Policy!!

  2. jane smith says:

    universal credit should not take account of savings. we all work to earn and then we chose what we do with the money. what is the point of saving for old age. we will benefit more if we spend spend spend! people who squander their earnings will get all the benefits. people who save will be punished for being prudent.

  3. karen says:

    savings should not be included – if you are on a low enough wage to claim UC or TC/WTC & you have managed to save some money then you should be applauded not penalised.

    Also I know of several people who only have savings because they were made redundant from previous employments & I don’t believe that this should be at all.

    • kim says:

      I agree, I am one of those who has lived a frugal life so as not to be in debt and to enable me to pay my own way. I earn just enough. At present I am on full CTC and WTC and when the new system comes in I won’t be entitled to a penny. Considering spending all my savings now!

  4. Jane says:

    I have recently been made redundant, and have also inherited some money from the sale of my mum’s house, as she died last year. I have always contributed to the state via National Insurance, but it seems that because my postcode lies in one of the trial areas for Universal Credit, that I won’t be entitled to receive any benefit due to it being means tested.

    However, people who have never contributed a penny can get massive amounts of money – certainly more than I was earning when I worked part time.

    I think that benefits should be there for those who have contributed regardless of savings or family circumstances at least for a certain period of time. I haven’t voluntarily come out of work..I want to work….I won’t be looking for ways to stay on benefits and cheat the system,,,but personally, I feel absolutely cheated by the Government…. In addition, some of my colleagues will be able to obtain benefits because their postcode is not in the trial area. I feel totally dejected and angry.

    • John says:

      I totally agree with you Jane – I was made redundant a few years ago. I happily paid (well not exactly!) a huge amount of tax every year through PAYE and am now in the position of caring for both my parents with their ill health.
      I’ve managed to save some money but with useless interest rates, and quantative easing (= cheap money for banks) savings being drained.
      If Universal benefits is a way to clobber carers with any savings to look after their family full time the current government and IDS disserve all the whipping they will get in the coming general election!

  5. Kim says:

    I inherited some money when my husband died three years ago. Prior to that we earned and saved. I am left with three young children and although I live on the bread line I am very careful and as a result of my inherence I don’t qualify for housing benefit although do get CTC and WTC as I work. Through the new system I won’t be entitled to anything!

  6. sue says:

    I’m due to inherit more than 16000.00 when my late mother’s estate is finalised. I’m worried sick. I look after my disabled Grandson who’s 13. I work part time & receive CTC, WTC & housing benefit. I’ve saved hard all my life. The money I’m going to get will be gone in no time. But my main gripe is that when my current claim is taken away & I have to make a new one ( when my Mum’s money is gone ) I will get a lot less money because of the break in benefits. Also worried about what I spend because of deprivation of assets which means I can’t spend the money on any extras. Can’t even buy life insurance!

    • John says:

      Sue – my only advice is to give any agency that’s evaluating your benefits no excuse what so ever to deprive you of anything! Give them so much details about the care you give at the fraction of the cost to the government (they hope NIL) the cost they have in rejecting any appeal you make is totally out weighted.

      The more honest people post on public forums the more the public bodies will be forced to show mercy against the people that pay their wages through the tax system! Elections coming soon…. and your vote counts! (well until the next bunch are voted in)

    • michelle says:

      Sue . I am in the same boat . I feel so sick . I have three children one of which is on the high rate of disability. I can’t work at the moment becsuse of his needs . At the moment I get ctc and carers . When anything happens to my nanna I will come into over 16.000 and then I wont get a penny . This money is supposed to go away for their future . And now basically being told how to spend our inheritance / savings .


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