Universal Credit UK: The pension rule which over 55s

Ms Ingram said: “Savings above £16,000 make them ineligible to receive UC which is reduced once savings are in excess of £6,000.

“Every £250 of savings between these limits reduces the UC claim by £4.35 per month.”

The chartered financial planner added: “Over 55s need to be aware that money in pension pots is not counted for the Universal Credit means test unless they are over state pension age ( 66), but if money is withdrawn then it will count towards the savings taken into account for the means test with each £250 of cash reducing the UC claim by £4.35 per week.”

For those who file Self Assessment Tax Returns, another warning was issued.

According to Ms Ingram, these people may look to ring fence any money they owe for their 2018/19 tax bill.