18 year old - when Child ISA matures at £20,000 ... will he lose Universal Credit whilst studying?

LittleSun

My teenage son is living semi-independently (a long, difficult story).  He is nearly 18.  He is still studying at School doing A levels, but is in receipt of Universal Credit.  I'm not sure whether he has plans for higher education, to be honest.

Anyway, when he turns 18, his Child ISA will mature.  It will be worth nearly £20K!!!.  Mostly contributions by his granny every month over the years.  I am his mother and live in a social housing, disabled, and have no capital.

However, I am suspecting my son will not be eligible for Universal Credit when his ISA matures, as it is a significant sum of £20K.   Am I correct in this assumption?  Does anybody know if his universal credit/housing benefit will immediately stop as a result of ISA maturation?  Or if they delay it till he leaves school or education?

Its an unusual and complicated situation I know.

If anyone can shed ANY light on this I would be grateful.



  

poppy12345

Once he receives that money in the bank he will need to report the changes and all of his means tested benefits will stop. This includes UC and housing benefit. Being a student doesn't mean he can have savings of over £16,000 and still be entitled to means tested benefits.

LittleSun

OK thanks.  Its a shame in a way, as from his Granny's point of view it was meant to start him out in life and possibly higher education.  But it looks more likely that most of it will be spent paying for his basic living expenses (accomodation, food) when finishing his A levels next year.  We shall see.  Thank you v much for your reply poppy, thats helpful to know.    

poppy12345

I'm not sure why you think it's a shame. Surely you can't expect him to have all those savings and then still claim a means tested benefit. Once the savings drop below £16,000 then he'll be able to reapply but he'll have a reduction of £4.35 per month for every £250 over £6,000.

LittleSun

Its just because he will only have turned 18 and still doing A levels, when most students are still living at home.  I wouldn't expect it afterwards in any way.  As I said, it has been a complicated personal situation, not easily explained on a forum, as I said. 

LittleSun

It was meant to help him as an adult after A levels, but he has had some difficulties, can't go into here.

LittleSun

Under care of social services because of the circumstances ...

poppy12345

There's nothing complicated about it. He'll have savings above the maximum amount allowed and this applies to everyone who claims means tested benefits.

LittleSun

The only complication I was trying to explain is that he is STILL AT SCHOOL doing A levels, even if just turned 18.  So my question was whilst he was semi-independent and under 19 and doing A levels was my question. Obviously, I realise he would need to use the junior ISA capital after his A levels if he couldn't find work etc. 

poppy12345

It makes no difference whether or not he's still a student, savings/capital of more than £16,000 will mean all means tested benefits will stop, as previously advised.

I'm sure he won't be the first student to claim a benefit in his own right and have savings above the maximum level.

LittleSun

I understand re "student" in higher education, it was just he was still at school doing at A levels is the point I was trying to ask.  There was no need to be "testy" or accusatory in the thread.  I am just trying to find out his entitlement when in education and Under-19 and still at Sixth Form.