Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what assessment her Department has made of the impact of ownership of illiquid assets on Universal Credit eligibility.

No assessment has been made.

Universal Credit broadly follows the capital rules from legacy means-tested benefits, e.g. income-based Jobseeker’s Allowance.

The treatment of capital in any benefit that assists with living expenses is not a straightforward matter. Whilst it is important to encourage saving, it has never been thought right for substantial amounts of capital to be ignored.

Departmental guidance is available to assist our decision makers to determine the value of capital assets at the point of review. Disregards are in place for some illiquid assets that customers hold, such as personal possessions and their main home.