Onshore bonds & means-tested benefits
Naomi
Member
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!
Naomi
Comments
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.
Naomi
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.
"Investments with a life insurance element presumably includes a PruFund ISA too."
Yes!