Savings when working out UC entitlement

TheShape

calcotti said:

Yes it is. The value taken into account will be the amount in the LISA less the penalty charge for early withdrawal.
The benefits system does not take account of the desire to save beyond £16,000 regardless of purpose and anything over £6,000 will reduce entitlement.

Something that comes to mind.
With the penalty charge being reduced for LISAs this tax year I imagine that claimants should have declared a change in the value of savings in this tax year and report another change come 6th April.
I'm not sure if the DWP keep a record of precisely what type of account that savings are in.  Specific information will certainly be missing in many cases for claims made from March to July and possibly beyond.

calcotti

TheShape said:

calcotti said:

Yes it is. The value taken into account will be the amount in the LISA less the penalty charge for early withdrawal.
The benefits system does not take account of the desire to save beyond £16,000 regardless of purpose and anything over £6,000 will reduce entitlement.

Something that comes to mind.
With the penalty charge being reduced for LISAs this tax year I imagine that claimants should have declared a change in the value of savings in this tax year and report another change come 6th April.
I'm not sure if the DWP keep a record of precisely what type of account that savings are in.  Specific information will certainly be missing in many cases for claims made from March to July and possibly beyond.

I think DWP would still apply the standard penalty charge, not the temporary reduced charge. Certainly the DWP guidance refers to the normal 25% deduction and has not been amended. See paragraph H1569 of  https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/890315/admh1.pdf

[Deleted User]

cmbrookes said:

Thanks for the quick response. What is the point in saving when your expected to live off your savings? what a joke

That’s the way the system works. You can’t expect to have all your money saved and have the taxpayers give you additional to live off because you don’t want to use your savings. 

strawb_shortcake

I thought the point is that you are meant to have savings so you don't need to rely on benefits. 
However, I do get legacy benefits but think it's stupid that i am entitled to do so, and ridiculous that I can take advantage of the help to save scheme, but from a financial perspective it would be foolish of me to give up my tax credits and access to this money, it does however put me in a much better position to save and be able to help my children more so as and when they need it.