advice re benefits for JSA. Is childrens income counted

fad1211

My husband has yesterday been made redundant, and now we will unfortunately have to enter the dole door. I have always saved my childrens child benefit money since they were born and now have about £10,000 in there. My husband has always worked and we have never been on the dole. The £10,000 goes in my daughters bank account whom child benefit pay directly, and it is her money for when she turns 18.

I would like to know that do i need to declare this income or not??

Thank you in advance.

Naz

Oldernotwiser

It may be in account in your daughter's name but it is your money,given by the state to you.

tazwhoever

i believe it affects jsa ir, but does not affect hb and ctb

Sharon87

I think it only affects it if you have 16K or more in savings. but you do have to declare it, unless it's in a trust fund you can't touch, then that may be different.

LondonDiva

Your family have savings of £10, 000 from child benefit etc - If so, should you not spend the money for the purposes the tax payer gave it to you e.g.: feeding & maintaining your children?

CB is not a child's 'income'. It is provided for the additional expenses a child brings, you've chosen to put it in that account - now choose to spend it to cover the essential costs you now have.

seven-day-weekend

Not the best advice from Orville.

I think it will still be classed as your money if you have access to the account.

If your husband has been working he should be entitled to Contributions-based JSA, this is based on his NI and will not be affected by the savings. This can be paid for six months.

When it runs out, if he has not got a job he will go onto Income-based JSA. This will be affected by savings, anything below £6k is disregarded but after that amount it reduces JSA (and other means-tested benefits) and after £16k you are no longer eligible for means-tested Benefits.

Some spending is classed as acceptable and won't be classed as deprivation of capital in order to claim Benefits, for example essential repairs to the house, using it to pay essential bills or a replacement family car (not a Ferrari!) .

If the money is then below £6k he will be eligible for means-tested Benefits.

They will want to see your Bank Accounts, including the children's, so if any money has 'disappeared' they will want to know where it has gone.

Hope this helps.

codwidow

Its your daughters savings as you have chosen to give it to her as savings, dont really see what it has to do with anyone else its not yours to touch if its in her name surely ?

hibbi

JSA DON'T take into account child benefit, they do take into account Working tax and child tax credits.
If your husband claims Contribution based only then he will recieve 64.30 per week until the tariffs change at the start of the tax year then it will go up by about a quid. No incomewill be take into account unless its from a pension or any current work under 15 hrs per week.

On income based benefits then with any income over 6,000 you will start to get deductions from your JSA money which would be 100.95 for a couple although again this is due to go up by a poundish.

I wouldn't declare it

LondonDiva

hibbi wrote: »

JSA DON'T take into account child benefit, they do take into account Working tax and child tax credits.
If your husband claims Contribution based only then he will recieve 64.30 per week until the tariffs change at the start of the tax year then it will go up by about a quid. No incomewill be take into account unless its from a pension or any current work under 15 hrs per week.

On income based benefits then with any income over 6,000 you will start to get deductions from your JSA money which would be 100.95 for a couple although again this is due to go up by a poundish.

I wouldn't declare it

That is CB as income when it comes in.

However, the OP has chosen not to spend her CB income and has saved it.

Therefore, it is savings and will be counted. If it wouldn't be taken into consideration by the DWP, why the advice not to declare it and leave herself open to allegations of fraud?

Indie_Kid

tazwhoever wrote: »

i believe it affects jsa ir, but does not affect hb and ctb

hb & ctb are means-tested, therefore, are affected.

I think it only affects it if you have 16K or more in savings.

As SWD has pointed out, it affects it if you have savings of 6k. After 16k, you get nothing.

hibbi

Because if you read the OP she states that the money goes into her daughters account so therfore it is not her money.