Capital threshold

The household capital threshold is £3,000 if aged under 61 and £16,000 if aged 61 or over. Capital includes all savings. It even includes a lump sum redundancy payment or pay in lieu of notice, making it particularly difficult for recently dismissed workers who want to challenge their dismissal and whose termination payment represents their only savings.

A prospective claimant with household capital below the capital threshold has two possible pathways to remission. Those in receipt of particular so-called passported benefits qualify automatically. Others must not exceed an income threshold, explained below.