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 to challenge their dismissal where their termination payment represents their only savings. The same is true for women who may have put money aside to fund the extra costs and reduced earnings associated with having a baby. In its recent review of tribunal fees (see box on page 25), the government said it sees no injustice in requiring these workers to use their savings to fund any tribunal claim.


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