Benefits whilst having L.i.S.A

Pentregethin_6840

My son has recently lost his job, but has been told due to his LISA savings amount, he is unable to claim whilst looking for another job.   Is this correct?

Isthisforreal99

Depending on the amount and the benefit claimed yes.

It's treated no differently to any other savings for benefits

itsthelittlethings

He might be able to claim new style JSA if he has had a job for long enough, but that is not much. He would not be able to claim Universal Credit if he’s got too much savings.

peteuk

As he has access to the LISA,75% of the total amount is classed as capital. 

LISA of £27,000 is treated as £20,250 for UC (ADM H1)

So, if his LISA has £21,400.00 then 75% is £16,050.00, so therefore he has too much capital to claim UC.  Don't forget, Capital will also include what's in his bank minus that month's wage, and other savings.

UC is reduced at the point of £6,000 in capital by £4.35 per £250 or part of there in.  At £16,000 the entitlement stops. 

If he is living with someone/married, the UC will be a joint claim and will take into account his partner's savings as well.