Hi gina35
No it is not counted as income and is ignored as capital for the first year.
You can have up to £6000 in savings and assets without it affecting your UC, over £6000 then there is a £1 per week deduction for every £250 or part thereof, in excess of the £6000.
Savings and assets in excess of £16,000 will mean that you are no longer eligible for UC and CTRS.
Gary
Nothing on this board constitutes legal advice - always consult a professional about specific problems 
