Is will our LISA’s mean we won’t be eligible to claim for anything?

[Guest]

Me and my partner never used to be able to qualify for any help, universal credits etc as we always earned over the threshold collectively. He has recently had to leave his job and now on the look out for new work. We of course don’t know how long it will be until he finds something and need the additional help financially as my wage won’t cover all bills and rent, we also have a 6 year old.

We both have savings in an LISA, which we of course don’t want to withdraw from due the the high penalty (25%) and it’s our hard earning savings towards a house deposit. We have no other savings or income apart from mine, so my query is will our LISA’s mean we won’t be eligible to claim for anything?

[Samantha]

Benefits are surely for people IN NEED, If you have money in savings you are not a person in need of government help.

[Kerry]

Having savings in a LISA will count as savings with uc. If over 6k than you'll face a reduction for every £250 over the 6k. If over 16k then you aren't entitled to any uc

[Michelle]

It’s still savings you can withdraw to support yourself so will count. As already mentioned it depends on the amount.

[Rachel]

Depends how much it is over £6k will affect it. All you can do is claim and see if you're entitled.