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Universal Credit and ISA for pension

Unfortunately my oh has been diagnosed with a major illness. At least he will be off work for 4-5 months. He has s&s ISA's saved (just above £16k threshold for UC) for his pension due to advice previously given by FA. Return would be more due to the advanced age he was when considering extra pension, as previously only minimal amount paid...
Receiving a lot of cinflicting info atm. We have debts of £18k. Where does this leave us if my oh applies for UC? He is 5 years off retirement age. 


  • calcotti
    calcotti Forumite Posts: 15,696
    Part of the Furniture 10,000 Posts Name Dropper
    edited 14 July at 7:42PM
    Could apply for new style ESA, it is not affected by savings (but cannot claim if receiving SSP).

    Could pay off some debt to reduce savings and would then be eligible for UC.

    I don't understand what you are saying about pensions.
    Information I post is for England unless otherwise stated. Some rules may be different in other parts of UK.
  • poppy12345
    poppy12345 Forumite Posts: 17,114
    Ninth Anniversary 10,000 Posts Name Dropper
    If you're living together then you will need to claim UC as a couple and entitlement will be based on your joint circumstances because it's a means tested benefit. Before paying off your debt i'd advise you to use a benefits calculator to check entitlement.

  • NedS
    NedS Forumite Posts: 3,369
    1,000 Posts Fourth Anniversary Name Dropper
    As he has capital over £16k he will currently be unable to claim UC/means tested benefits.
    The £16k plus in an ISA may be intended for his retirement, but it is not a pension and therefore will count towards any means tested benefit assessment. He could choose to pay some (or all depending upon his earnings) of the money into a pension, receive tax relief on it, and take his capital under the £16k threshold for claiming means tested benefits. He could also choose to pay off some debts, thus reducing the amount of capital and become eligible to claim means tested benefits.
    I assume you are a couple living together? If so, any claim for UC must be a joint claim and it is your joint (combined) capital that is important, not just his.
  • Bigwheels1111
    Bigwheels1111 Forumite Posts: 1,833
    1,000 Posts First Anniversary Name Dropper
    My friend was in a similar situation.
    Had money to clear his mortgage and all debts.
    About 40k.
    Lost his job and couldn’t claim any benefits because of savings.
    He just paid off the mortgage and debts.
    Benefits door opened.
    No deprivation of capital as were debts.

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