Universal Credit query?

TUVOK

My son is disabled and unable to work, he receives a Universal Credit payment.

I have been adding to a Stocks and Shares Isa for him to help with his future after I die.
The present value of the ISA is approximately £7300-00, all of the investments are in the accumulation mode, thus he receives no monetary income, all profits are kept inside the ISA.

I have tried to understand the rules regarding my query, but I'm still unsure and would welcome help from a member who understands my query

Is he allowed to have this ISA in its present form i.e. accumulation mode and not have any problems with retaining his current universal credit payment? or does he have to declare this ISA to the DWP?

TUVOK

I should also have mentioned that he receives a PIP payment as well as the Universal credit, again understanding the rules on this situation is too much for me to understand.

Thank you for any/all replies.

sammyjammy

He needs to declare it immediately. He will have an overpayment for every month it was over £6000 and may get a civil penalty of £50 for failing to declare it.

poppy12345

PIP isn’t means tested so won’t be affected. Any money left unspent from this at the end of the following assessment period for UC will be treated as capital. 

The deduction for every £250 or part thereof over £6,000 is £4.35/month. 

If he received any of the cost of living payments they are all disregarded indefinitely providing his capital didn’t drop below the amount of CoL payments he received. 

born_again

TUVOK said:

My son is disabled and unable to work, he receives a Universal Credit payment.

I have been adding to a Stocks and Shares Isa for him to help with his future after I die.
The present value of the ISA is approximately £7300-00, all of the investments are in the accumulation mode, thus he receives no monetary income, all profits are kept inside the ISA.

I have tried to understand the rules regarding my query, but I'm still unsure and would welcome help from a member who understands my query

Is he allowed to have this ISA in its present form i.e. accumulation mode and not have any problems with retaining his current universal credit payment? or does he have to declare this ISA to the DWP?

It's not clear from that, just who's name is the ISA in?

Can you conform if it is in HIS (then above posts are correct) or if it is in YOUR name. Then it will not affect him, or require declaring to UC 👍

TUVOK

The ISA is in his name.
Thank you all for your replies, We can now follow a course of action in certainty of the rules.

HillStreetBlues

sammyjammy said:

He needs to declare it immediately. He will have an overpayment for every month it was over £6000 and may get a civil penalty of £50 for failing to declare it.

There isn't enough info to say there will be an overpayment and they are over the lower capital limit.
What the OP needs to provide is how much other monies the son has, what is their income (PIP & UC payments) and did they have any CoL payments.

TUVOK

Does holding premium bonds count when receiving either/or PIP, UNIVERSAL CREDIT? 

poppy12345

TUVOK said:

Does holding premium bonds count when receiving either/or PIP, UNIVERSAL CREDIT? 

Not for PIP because it's not means tested. They count towards your capital for means tested benefits such as UC. 

HillStreetBlues

TUVOK said:

Does holding premium bonds count when receiving either/or PIP, UNIVERSAL CREDIT? 

If you want to give a fully breakdown of UC & PIP payments  and any CoL payments and all monies held we can determine if your son is over the capital limit.