Universal credit isa cash help

voixdeville

Hi,

I was wondering whether money in a ‘Help to buy’ ISA is counted towards the (less than) £16,000 savings permitted to apply for universal credit?

The reason I ask this, it’s because when I used the money saving expert calculator to see whether I was entitled to claim benefits, the calculator didn’t seem to include my savings from the ISA towards the £16,000 total.

If any would help me out with this, that would be greatly appreciated. Thank you very much

poppy12345

It is classed as savings.

calcotti

I can’t find a definitive answer but I think it may well be ignored because you cannot access it (other than to buy a home).

poppy12345

calcotti said:

 you cannot access it (other than to buy a home).

I disagree with that. It's my understanding that you can withdraw from the help to buy ISA anytime you want to.

https://www.barclays.co.uk/savings/isas/help-to-buy-isa/

Can I withdraw money from my
Help to Buy: ISA?

You can take out money whenever you want. Just remember that making withdrawals means it will take longer to build up your savings, as you can only pay in up to £200 per month. Also, the bonus amount you receive from the government is based on the closing balance by the time you claim.

Alice_Holt

An ISA does counts towards the £16k limit. (As does a LISA)

I'm not sure that where is a penalty for withdraw, if that % is then disregarded by UC.

https://www.moneyhelper.org.uk/en/savings/types-of-savings/help-to-save-explained

https://www.financialreporter.co.uk/savings-and-investments/universal-credit-penalising-lifetime-isa-savers.html

calcotti

poppy12345 said:

calcotti said:

 you cannot access it (other than to buy a home).

I disagree with that. It's my understanding that you can withdraw from the help to buy ISA anytime you want to.

https://www.barclays.co.uk/savings/isas/help-to-buy-isa/

Can I withdraw money from my
Help to Buy: ISA?

You can take out money whenever you want. Just remember that making withdrawals means it will take longer to build up your savings, as you can only pay in up to £200 per month. Also, the bonus amount you receive from the government is based on the closing balance by the time you claim.

Thanks poppy, I thought funds were tied up.* In that case the Help to Buy ISA will definitely count.

*I realise I muddled up the general funds with the bonus funds which are only made available when purchasing a property.

poppy12345

Alice_Holt said:

I'm not sure that where is a penalty for withdraw, if that % is then disregarded by UC.

I don't believe there's a penalty for withdrawing the cash, based on experience from a family member.

Alice_Holt

poppy12345 said:

Alice_Holt said:

I'm not sure that where is a penalty for withdraw, if that % is then disregarded by UC.

I don't believe there's a penalty for withdrawing the cash, based on experience from a family member.

      For a LISA  there is a 25% penalty if withdrawing for other than house purchase / pension.  This effectively removes the 'bonus' added by HMG.

    Re Help to Buy - I'm wasn't sure if there was a similar penalty.
The link you posted indicates not. (As the HMG bonus is added at the end). 

kaMelo

Alice_Holt said:

poppy12345 said:

Alice_Holt said:

I'm not sure that where is a penalty for withdraw, if that % is then disregarded by UC.

I don't believe there's a penalty for withdrawing the cash, based on experience from a family member.

      For a LISA  there is a 25% penalty if withdrawing for other than house purchase / pension.  This effectively removes the 'bonus' added by HMG.

    Re Help to Buy - I'm wasn't sure if there was a similar penalty.
The link you posted indicates not. (As the HMG bonus is added at the end). 

The Government bonus is added to the LISA as you go along, that's why there is the penalty for withdrawal for anything but a house purchase before turning 60. With the Help to Buy ISA the bonus is only paid when purchasing a property so no withdrawal penalty.
These, as indeed any ISA, will count towards the savings limits as it's always possible to withdraw money from any adult ISA account

poppy12345

Alice_Holt said:

poppy12345 said:

Alice_Holt said:

I'm not sure that where is a penalty for withdraw, if that % is then disregarded by UC.

I don't believe there's a penalty for withdrawing the cash, based on experience from a family member.

      For a LISA  there is a 25% penalty if withdrawing for other than house purchase / pension.  This effectively removes the 'bonus' added by HMG.

    Re Help to Buy - I'm wasn't sure if there was a similar penalty.
The link you posted indicates not. (As the HMG bonus is added at the end). 

Yes, it was the help to buy i was refering to, sorry i should have stated that.

BUTEMACS

The older HTB ISA does not pay as you go along the government only pays 25% when you actually buy a home it is the newer HTB LISA that pays as you go along, the reason UC penalise any sort of savings is to do with the interest savings gain every month so if any account is generating interest every month or as you say gaining from government scheme on a regular basis your UC will have money deducted every month.