Universal Credit is relied upon by over six million people throughout the UK. However, the Department for Work and Pensions (DWP) may reduce your Universal Credit payments or even stop your claim altogether if you have savings or investments.

If your cash, savings, and investments total more than £6,000, your benefit will be cut by £4.35 for every £250 between £6,000 and £16,000. An extra £4.35 is deducted even if the additional amount saved is less than £250.

For example, if you have £6,300 in savings, no deductions are made on the first £6,000, but the remaining £300 would result in a deduction of £8.70 from your payments. These rules apply whether you're claiming as an individual or as part of a couple.

Generally, you won't be eligible for Universal Credit if your savings or investments exceed £16,000. However, according to the Mirror, if you're currently receiving Tax Credits and have been asked to switch to Universal Credit, you could still qualify for Universal Credit for up to a year, even if you have more than £16,000.

Universal Credit comprises a standard allowance, which is the basic amount you receive before any additional elements-for instance, if you have children or are unable to work due to illness-or any deductions are taken into account. If you're employed, there's a taper rate that reduces your maximum Universal Credit payment as your earnings increase.

The taper rate is currently set at 55%, meaning 55p is deducted from your maximum Universal Credit payment for every £1 you earn. A "work allowance" refers to the specific threshold of income individuals can earn before their Universal Credit starts to reduce. This April, those on Universal Credit are in line for a 1.7% payment increase.

Here is a glimpse of the potential raise you might see, but it's key to remember that Universal Credit is paid in arrears, meaning the boost could actually reflect in your payments by May or June:

Standard allowance

• Single under 25: £311.68 a month to £316.98 a month
• Single 25 or over: £393.45 a month to £400.14 a month
• Joint claimants both under 25: £489.23 a month to £497.55 a month
• Joint claimants, one or both 25 or over: £617.60 a month to £628.10 a month

Child element

• First child born before April 6, 2017: £333.33 a month to £339 a month
• First child born on or after April 6, 2017 or second child and subsequent child: £287.92 a month to £292.81 a month
• Disabled child element lower rate: £156.11 a month to £158.76 a month
• Disabled child higher rate: £487.58 a month to £495.87 a month

Limited capability for work

• Limited capability for work: £156.11 a month to £158.76 a month
• Limited capability for work or work-related activity: £416.19 a month to £423.27 a month

Carer element

• £198.31 a month to £201.68 a month

Work allowance

• Higher work allowance (no housing amount): £ 673 a month to £684 a month
• Lower work allowance (with housing amount): £404 a month to £411 a month

Childcare costs element

• Maximum for one child: £1,014.63 a month to £1,031.88 a month
• Maximum for two or more children: £1,739.37 a month to £1,768.94 a month