- Receiving: a one-off gift of money is capital, so it is added to your savings. It is not counted as income.124
- Tell DWP about one-off payments such as gifts. It only reduces your UC if your savings go over £6,000.58
- Giving: you can give money away, but if a significant reason was to get or keep UC, DWP can treat you as still having it.72
Receiving money: why a gift is savings, not income
A payment that is not made regularly and is not made by reference to a period is capital.12
Universal Credit only counts the kinds of unearned income listed in regulation 66, such as pensions, some benefits, spousal maintenance and student income. Gifts are not on the list, and DWP's guide says “If a type of income is not listed above, it does not affect the claimant's award.”34
Money you are given and keep still adds to your savings, and DWP's guidance lists gifts among the one-off payments to report.5
Borrowed money counts as capital too, unless you are under a certain and immediate obligation to pay it back.2
Worked example: a gift from your parents
A single person aged 25 or over pays £600 a month rent, has £3,000 saved, and their parents give them £5,000.
| Universal Credit before the gift | £1,024.90 a month |
| Savings after the gift | £8,000 |
| Tariff income on the amount over £6,000 | £34.80 a month |
| Universal Credit after the gift | £990.10 a month |
Giving money away
The law treats you as still having capital you deprived yourself of to get UC or more UC.7 DWP's guide says giving capital away is a choice, so DWP looks at why and when you did it.2
Getting UC does not have to be your main reason. DWP's example is someone who gives all their savings to a relative just before claiming: the main purpose may be to help the relative, but a significant purpose may be to get UC.2
Buying a present is buying goods, which is protected if the cost was reasonable in your circumstances.7
Worked example: giving savings to a son before claiming
Someone with £15,000 gives £10,000 to their son just before claiming. If DWP decides a significant reason was to get UC:
| UC they expected, with £5,000 | £1,024.90 a month |
| Capital DWP counts (actual + notional) | £15,000 |
| UC paid | £868.30 a month |
The notional part then goes down each assessment period by the tariff income it produces.7
Common mistakes
Not reporting a gift because it is not income. It is capital and adds to your savings.25
Holding someone else's money in your account. GOV.UK lists money that belongs to someone else but is in your name among the savings DWP counts, so keep evidence of whose it is.6
Thinking a gift to a partner removes it. On a joint claim your partner's money is counted with yours.6
See what your savings do to UC with the savings calculator →
Universal Credit savings limit calculator 2026/27 UK (free)