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<p>A key principle of UC is that it supports people who do not have assets available
to meet their basic needs. While it is important to protect the incentive to save
for claimants on low earnings, people with substantial capital can take responsibility
for their own support. This is to ensure that we can maintain our focus on getting
money to citizens who need it and safeguarding the most vulnerable.</p><p> </p><p>If
capital exceeds £16,000 there will be no entitlement to UC, unless the capital can
be disregarded, for example personal injury compensation payments. Capital above £6,000
will reduce the amount of UC paid by £4.35 per month for every £250 of capital or
part thereof.</p><p> </p><p>If someone has money in their account that is to be used
for business purposes, for example for paying tax, it will not be counted towards
their capital, but they may be asked to prove that the money is for business purposes.
People should make clear in their application the savings that are business assets,
and note it in their online journal.</p>
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