Applying for UC - LIfetime ISA

Lucky_Ph1l

Hi,

I am enquiring about claiming Universal Credit as I have been unemployed for a considerable time now.

I have just completed the Benefits calculator on this website. It states

What to include as savings

You should enter as savings any money that you can access relatively easily or financial products that can be sold on. The definition of savings for the means test in benefits includes:

• cash;
• money in bank or building society accounts, including current accounts that don’t pay interest;
• money in a Tax Free Childcare account (enter 80% of value)
• National Savings accounts and certificates;
• income bonds;
• stocks and shares;
• property (other than your own home);
• Premium Bonds
• Lump sum taken from a pension fund
• Lump sum payments on finishing work such as redundancy pay or employment tribunal awards

There is no mention of disclosing the amount you have in a Lifetime ISA. This is certainly not money you can access easily and if you did access it you would lose the bonus on this. It also cannot be sold on

The links to advisers don't work so can anyone give me a definitive answer on this please?

TIA
LP

marcia_

 Yes it definitely needs to be declared and may rule out you getting any benefits. 

Comes under here 

• money in bank or building society accounts, including current accounts that don’t pay interest;

Lucky_Ph1l

What if the LISA isn't with a bank or building society?

marcia_

Lucky_Ph1l said:

What if the LISA isn't with a bank or building society?

 Makes no difference you need to declare all savings. 

 Who is it with if not a bank or building society? 

teaselMay

https://www.gov.uk/guidance/universal-credit-money-savings-and-investments

Needs to be declared same as any other savings account

kaMelo

Lucky_Ph1l said:

What if the LISA isn't with a bank or building society?

As above, wherever a LISA, or indeed any ISA, may reside it needs declaring as capital as it is always available, that is a legal requirement of ISA's.

The only thing with Lisa's is, if I remember correctly, I think the amount to declare is the amount you would receive after the 25% penalty was applied.

born_again

marcia_ said:

Lucky_Ph1l said:

What if the LISA isn't with a bank or building society?

 Makes no difference you need to declare all savings. 

 Who is it with if not a bank or building society? 

Either way it will have to be with a regulated financial business & no matter what is counted as saving as you said. 

Yes, a Lifetime ISA (LISA) counts as savings for Universal Credit (UC): 

• What is considered capital

  LISA savings are considered capital, along with other savings, investments, and property. 

How is it treated

The surrender value of a LISA is taken into account as capital. The surrender value is the amount that can be withdrawn after a 25% early withdrawal charge for claimants under 60. 

What’s not counted as money, savings and investments 

Your personal possessions are not taken into account.

Some types of money, savings, investments or other assets might not affect your claim for Universal Credit. You still need to tell us about these so we can decide whether to take them off your overall money, savings and investments. 

You must tell us about:

• personal injury and illness compensation
• special compensation schemes for traumatic events
• welfare support payments
• Bereavement Support Payments (previously Widowed Parent’s Allowance)
• funds from selling your home
• money for tax payments if you’re self-employed

You do not need to tell us about:

• life insurance policies that have not been paid out
• funeral plan contracts
• savings or investments belonging to your children in your children’s name. Read more about Universal Credit and children’s savings
• business accounts and assets for businesses that are still operating or have closed in the last 6 months

Although there is a petition to get Lisa removed from savings. 

HillStreetBlues

kaMelo said:

Lucky_Ph1l said:

What if the LISA isn't with a bank or building society?

The only thing with Lisa's is, if I remember correctly, I think the amount to declare is the amount you would receive after the 25% penalty was applied.

That's correct, it would be  the surrender value