Onshore bonds & means-tested benefits

Naomi

Hi everyone,

Just a quick question about means-tested benefits relating to onshore investment bonds.

The client who receives universal credit, will be being assigned an onshore investment bond worth around £45,000, and will also be taking £200pm (if that's relevant).

I wanted to know if this would count towards the £16,000 limit for capital and savings? I haven't been able to find anything online to confirm other than for care home funding.

Thank you!

TimMatthias

Hi Naomi,

The following webpage suggests that having £45,000 in an onshore bond will count and will therefore mean your client won't be able to claim UC.

https://www.understandinguniversalcredit.gov.uk/new-to-universal-credit/how-much-youll-get/

Naomi

@TimMatthias said:
Hi Naomi,

The following webpage suggests that having £45,000 in an onshore bond will count and will therefore mean your client won't be able to claim UC.

https://www.understandinguniversalcredit.gov.uk/new-to-universal-credit/how-much-youll-get/

Thank you for your help Tim, that link was very useful.

les_cameron

I've always understood they are considered but this is the DWP guides for Staff if you scroll down to H2 - Capital Disregards you will see that onshore investment bonds are disregarded indefinitely. https://www.gov.uk/government/publications/advice-for-decision-making-staff-guide

I believe withdrawals will be counted as income.

You'd best ask the UC people and get it form the horses mouth

TimMatthias

@les_cameron said:
I've always understood they are considered but this is the DWP guides for Staff if you scroll down to H2 - Capital Disregards you will see that onshore investment bonds are disregarded indefinitely. https://www.gov.uk/government/publications/advice-for-decision-making-staff-guide

I believe withdrawals will be counted as income.

You'd best ask the UC people and get it form the horses mouth

Thanks Les. Investments with a life insurance element presumably includes a PruFund ISA too.

les_cameron

"Investments with a life insurance element presumably includes a PruFund ISA too."

Yes!