Can I claim Job seekers Allowance if i have savings? A UK Guide to Capital Limits, Eligibility & What Counts as Savings
If you’re Googling Can I claim job seekers allowance if i have savings, you’re usually trying to figure out one of two things:
- Will savings stop me getting JSA?
- Am I actually thinking of Universal Credit (UC) savings rules instead of JSA?
This guide explains the difference clearly, using UK rules and real-life scenarios, plus what you should do next.
Can I claim Job seekers Allowance if i have savings?
Yes, you can often claim New Style Jobseeker’s Allowance even if you have savings, because savings/capital are not taken into account for New Style JSA.
Many people say “JSA” when what they really need is means-tested support (most commonly Universal Credit) and UC does consider savings/capital.
“JSA” can mean different things in 2025
New Style JSA vs income-based JSA vs Universal Credit
- New Style JSA (current, contribution-based): Based mainly on National Insurance (NI) history; not means-tested for savings.
- Income-based JSA (legacy): You generally can’t make a new claim now; if you’re already on it, different rules apply.
- Universal Credit (UC): Means-tested; savings/capital can reduce it or stop it.
Quick eligibility snapshot
- If you’re asking about New Style JSA: Savings usually won’t block your claim, but NI contributions and work-search conditions matter.
- If you’re asking about UC / means-tested support: Savings do matter (often via the £6,000 and £16,000 thresholds).
Here’s what you can do next: First, identify which benefit you’re actually eligible for, then you can stop stressing about the wrong savings rule.
New Style JSA at a glance and where savings fit?
What is New Style JSA, and does it look at savings?
New Style JSA is a contribution-based payment you may be able to claim if you’re unemployed (or working under 16 hours/week on average) and you meet NI contribution conditions.
Savings/capital are not taken into account for New Style JSA including your partner’s savings.
How long does New Style JSA last?
Typically, it can be paid for up to around 6 months (182 days).
How much might you get?
For 2025/26, weekly rates shown in the government rates publication include:
- Under 25: £72.90/week
- 25 or over: £92.05/week
New Style JSA vs Universal Credit: What savings affect?
| Benefit | Is it means-tested? | Do savings/capital matter? | Key takeaway |
|---|---|---|---|
| New Style JSA | No (mainly NI-based) | No (savings not taken into account) | Savings usually won’t stop you—NI record and jobseeking rules matter. |
| Universal Credit | Yes | Yes (can reduce or stop payment) | Savings thresholds are the big issue here. |
| Income-based JSA (legacy) | Yes | Yes | New claims are generally not available now. |
If savings don’t stop New Style JSA, why do people keep hearing about £6,000 and £16,000?
Because those figures are mostly UC (and other means-tested benefits) territory, not New Style JSA.
A very common situation looks like this:
- You qualify for New Style JSA (NI-based) → savings don’t block it.
- You also try for UC (for rent help, children, low household income, etc.) → savings do get assessed.
Can you claim New Style JSA and Universal Credit at the same time?
You can claim both in some situations, but New Style JSA is usually taken into account when UC is calculated, so you may not be better off overall.
Universal Credit savings rules
How much can you have in savings before UC is affected?
GOV.UK summarises UC capital rules like this:
- Under £6,000: Doesn’t affect your award.
- £6,000 to £16,000: UC is reduced.
- Over £16,000: Usually not eligible for UC.
What is tariff income, and how does it reduce UC?
If you have savings between £6,000 and £16,000, UC is reduced by £4.35 per month for every £250 (or part of £250) over £6,000.
UC savings bands
| Your savings/capital | What happens to UC? | How it’s worked out |
|---|---|---|
| £0–£5,999 | No reduction | Ignored for UC |
| £6,000–£16,000 | Reduced | −£4.35/month per £250 (or part) above £6,000 |
| £16,000+ | Usually not eligible | UC normally stops/not payable |
Here’s what you can do next: If you’re near a threshold, track your balances across all accounts—UC looks at the total capital you own (including jointly owned money).
What counts as savings or capital for UK benefits?
For UC, GOV.UK includes a wide definition of capital, covering things like bank accounts, digital accounts, ISAs, Premium Bonds, cryptoassets, some property you don’t live in, and more.
Do ISAs count as savings?
Yes, ISAs (cash, stocks and shares, Lifetime ISA, Help to Buy ISA, etc.) are listed as part of money/savings/investments for UC.
Do Premium Bonds count as savings?
Yes, Premium Bonds are explicitly included in the GOV.UK list.
What about children’s savings?
Children’s savings in the child’s name (like Junior ISAs / Child Trust Funds) are not taken into account for UC.
“What if…” scenarios people worry about
Can I claim Jobseeker’s Allowance if my partner has savings?
- For New Style JSA, GOV.UK says your savings/capital (or your partner’s) are not taken into account.
- For UC, your partner’s capital is counted because UC is assessed on combined household capital for couples.
What if I get redundancy pay, an inheritance, or a lump sum while claiming UC?
GOV.UK lists examples you must report, including inheritance payments, redundancy pay, pension/life insurance lump sums, compensation payments, and changes in investment values.
Do I have to tell the DWP about savings changes?
For UC: Yes, GOV.UK says you must report changes as soon as they happen, and late reporting can lead to overpayments that you may have to repay.
Can you spend down savings to qualify?
This is the part people accidentally get wrong.
What “deprivation of capital” and “notional capital” mean?
If you deliberately reduce or move money to get (or increase) UC, the DWP may treat you as still having it, called notional capital.
GOV.UK also gives examples of spending that may not count as deliberate deprivation (like paying off/reducing debts or buying reasonable goods/services for your circumstances).
If you’re unsure, the safest move is: get advice before making big transfers/gifts/spending decisions.
Special note for Northern Ireland
New Style JSA exists in Northern Ireland too, and NI Direct also references the up to 182 days point and how it interacts with UC.
Practical next steps
Step 1: Decide which benefit you’re targeting
- If your aim is help while job hunting and you’ve paid enough NI, New Style JSA is often the first thing to check.
- If your aim is help with rent/children / low household income, you’ll likely be looking at UC, where savings rules matter.
Step 2: Get your info ready
- National Insurance number + recent employment details
- Payslips/P45 (if you have them)
- Details of all accounts and investments (including ISAs, Premium Bonds, digital accounts)
- Notes on any recent lump sums (redundancy, inheritance, etc.)
Let’s explore your next best move: If you tell me roughly which applies (rent to pay? partner? children? NI contributions?), you can usually narrow the right benefit in minutes.
Common questions and their best first action
| Your situation | Most useful first action |
|---|---|
| You have £20k+ savings and need jobseeking support | Check New Style JSA (savings usually not counted) |
| You have rent/children and low household income | Check UC, then apply/report capital accurately |
| You’re between £6k and £16k savings | Expect UC reduction (tariff income rules) |
| You’re thinking of gifting money to qualify | Read deprivation/notional capital rules; get advice first |
Social signals and user sentiment
New Style JSA or Universal Credit?
byu/Alwispa inBenefitsAdviceUK
What are the capital rules in Universal Credit?
When assessing UC eligibility, the first £6,000 of a family’s capital is disregarded. Savings between £6,000.01- £16,000 are subject to a ‘tariff income’ of £4.35 per month for every £250 of capital. Those with savings over… pic.twitter.com/lL5HIZSlv5
— Resolution Foundation (@resfoundation) May 9, 2025
Today’s Twitter Poll: How much saving is too much to receive Universal Credit (the catch all benefit for people of working age)?
If u (& partner together, if ur a couple) have £6,000+ savings ur UC is reduced, if you’ve £16,000+ you’re ineligible
Which is CLOSEST to ur view?
— Martin Lewis (@MartinSLewis) May 15, 2023
Conclusion
The best way to answer can i claim job seekers allowance if i have savings is to translate it into the right system:
- New Style JSA: Savings usually won’t stop you.
- Universal Credit: Savings can reduce or stop what you get, especially above £6,000 / £16,000.
Here’s what you can do next: If you’re unsure, start by checking New Style JSA eligibility, then check UC only if you need means-tested support (rent, children, low household income).
FAQ
How much savings can you have before it affects Jobseeker’s Allowance?
- For New Style JSA, savings aren’t taken into account.
- For UC, savings under £6,000 are ignored, £6,000–£16,000 reduces UC, and above £16,000 usually means no UC.
Does New Style JSA consider savings and capital?
No, GOV.UK states savings/capital aren’t taken into account for New Style JSA.
Do ISAs and Premium Bonds count as savings for benefits?
For UC, GOV.UK includes ISAs and Premium Bonds as capital/savings/investments.
What happens if you don’t report savings changes on UC?
GOV.UK warns that failing to report changes can lead to overpayment and repayment deductions from future UC.
