IR ESA and cash ISA £3k.

Fletch69

Hi, Not been on for a while, but have questions/concerns over the upcoming move to UC, but hope everyone is well, considering!

Am in receipt of IR ESA (& PIP but know UC not concern PIP) & Housing Benefit. Current account deals with all income from benefits and all household expenses. Also have small Cash ISA in sum of £3k (with maybe £100 interest accrued). This Isa not been touched & is 5/6 years old. Over the years, adding balances from current account and ISA, we have never gone over the £6k limit.

My concern, is that when the UC migration letter does land on doormat, when we inform DWP of ISA account, are they likely to ask for history as to how this was accrued/where it came from? Or will they just add this to current account balance & see that never gone over £6k and leave it there?

The reason for this account was that after my 3rd cancer diagnosis, this £3k was actually called 'funeral account'! However, now that I have come to the 5 year end of treatment for that 3rd cancer, we're also thinking of opting pre paid cremation plans. This £3k, with a little more from current account will allow us to do this. The ISA account would obviously then be closed, leaving us with just the current account to concentrate on.

Hopefully, someone can advise, who may have been in similar circumstances, or just general advice would be greatly welcome. Many thanks.

Kimmy87

When you apply for UC you will be asked how much money you have in the bank, this means all accounts.

As it's under £6k total nothing further should happen.

If in future you get selected for a random UC check, you would submit statements for both accounts if the ISA is still open.

Fletch69

Hi Kimmy, Many thanks for your help. As it is new year, as many do, try to have a clean up of everything, new year new start, etc. That is why I mentioned option of dealing with pre paid cremations, which is what would use the £3k with top up from current account. This would then let us close ISA account, leaving just the current account to concentrate on, which would be much easier in future.