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Universal Credit claimants face a £4.25 rule which means the Department for Work and Pensions ( DWP ) could reduce their benefits.

The department will reduce your entitlement if your cash, savings or investments fall between £6,000 and £16,000.

For every £250 you have, the DWP can deduct £4.35 from the benefits you receive.

Any remaining sum under £250 will be reduced by £4.35.

An example provided by the DWP on Gov.uk reads: "Sam has savings of £6,300. She has £300 of savings over the limit of £6,000.

"Her Universal Credit is reduced by 2 x £4.35 a month, that's £8.70.

"Leeroy has savings of £14,500. He has £8,500 of savings over the limit of £6,000.

"His Universal Credit is reduced by 34 x £4.35 a month, that's £147.90."

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