I receive income related ESA, PIP and severe disability premium. When I was working, I opened a help to buy ISA. I’m very lucky that my grandfather has been adding to the ISA and it will soon have a balance of over £6000. I’m unsure whether this will affect my benefits as there seems to be a £16000 savings limit but also mention of a £4.35 per month reduction for every £250 over £6000 in savings. Does anyone know whether the help to buy ISA is included in the savings assessment and whether I will indeed see a reduction in my benefits of £4.35 per month for every £250 over £6000?
As you are in receipt of a means tested benefit, any savings you have over £6k will affect your benefits, this is called tariff income.
Most means-tested benefits are only paid to people with less than £16,000 in savings (tax credits and the guarantee element of Pension Credit are not affected by this rule).
If you (and your partner) are under Pension Credit age and have total capital over £6,000 then the government assumes you receive £1 per week for every £250 of capital you have above £6,000.
If you are over Pension Credit age the government assumes you receive £1 per week for every £500 of capital you have above £10,000.
Gary
Nothing on this board constitutes legal advice - always consult a professional about specific problems
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