How a released lump sum can affect means-tested benefits

Money sitting in your home does not count towards means-tested benefits, but the moment you release it as cash and hold it as savings it can. This simple guide flags whether a lump sum, added to your existing savings, might push you over the capital limits that affect benefits like Pension Credit and Council Tax Support.

This is general information, not benefits advice and not a benefits calculation. The rules are detailed, they change, and they differ across England, Scotland, Wales and Northern Ireland. Always check your own position on gov.uk or with a free, independent benefits adviser such as Citizens Advice or Age UK before acting.

Amount you plan to release (£)

Savings and capital you already hold (£)

Typical means-test capital limits for those over State Pension age: a lower limit around £10,000 and an upper limit around £16,000. Below the lower limit savings are usually ignored. Above the upper limit many means-tested benefits stop. Between the two, a tariff income is assumed. Check the current figures on gov.uk.

Capital position

Item	Amount

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