child giving parent cash each month

Vader123

andyandflo wrote: »

I just don't see that it is fair that mum's, dad's, children etc can't help out each other without the worry of them losing benefit because of it.

I don't see why tax payers "help out" people who have their own regular income that satisfies their means tested benefits!

Vader1

moomoomama27

andyandflo wrote: »

I used to give my single parent daughter until she got married last year, £300 every month to help out with the rent she was paying. It used to be a Standing Order from my account to hers. I would not have been happy if they had reduced her benefits by £300pm!! (IS, CTB, HB)

You have me thinking now, I am in the process of building two bungalows, one for us and the other for my other daughter. She & her partner are in rented accomodation and being on benefit, are having to find the extra over the HB payments every month which is a struggle. I pay her the same as I did for her sister £300pm which they use to buy the little extras, clothes for my two grandchildren, school trips, car tax, etc.

I was thinking of just giving them the property (losing capital for Inheritance purposes), but I now wonder if the DWP would see it as capital (property is worth about £325,000 ish - cost me a lot less to build of course!) Maybe it would be better to retain ownership but allow them to stay for free for life - it will be hers when I have gone anyhow!

I just don't see that it is fair that mum's, dad's, children etc can't help out each other without the worry of them losing benefit because of it. It's my money and they are gifts.

What you are doing is very generous, but by doing this you could be party to her committing benefit fraud! Your daughters have an obligation to declare any extra income to the relevent benefit offices, if they havn't done that it's fraud plain and simple, and provable as a standing order has been set between two bank accounts. Your daughters bank account can be accessed by the DWP and if they saw those regular transactions not being declared then she would be in alot of trouble, So be careful!

Robbie64

If the money was being given to help towards the rent then, assuming that the money was spent for this purpose (was there an HB shortfall?) then there isn't a problem. A payment made by a relative (or for that matter any third party that isn't judged to be a charitable payment) does not affect benefit if it is a payment made to meet an item that benefit would normally not be expected to cover.

Robbie64

andyandflo wrote: »

I used to give my single parent daughter until she got married last year, £300 every month to help out with the rent she was paying. It used to be a Standing Order from my account to hers. I would not have been happy if they had reduced her benefits by £300pm!! (IS, CTB, HB)

You have me thinking now, I am in the process of building two bungalows, one for us and the other for my other daughter. She & her partner are in rented accomodation and being on benefit, are having to find the extra over the HB payments every month which is a struggle. I pay her the same as I did for her sister £300pm which they use to buy the little extras, clothes for my two grandchildren, school trips, car tax, etc.

I was thinking of just giving them the property (losing capital for Inheritance purposes), but I now wonder if the DWP would see it as capital (property is worth about £325,000 ish - cost me a lot less to build of course!) Maybe it would be better to retain ownership but allow them to stay for free for life - it will be hers when I have gone anyhow!

I just don't see that it is fair that mum's, dad's, children etc can't help out each other without the worry of them losing benefit because of it. It's my money and they are gifts.

If you gift your daughter a house then it becomes part of her capital but while she lives in it the value of the house would be ignored, as is normal for owner occupiers on benefit.

Your main problem would be if you were on means tested benefits, the house may be considered to be your property and by giving it away you may be treated as depriving yourself of a capital asset.

andyandflo

Vader123 wrote: »

I don't see why tax payers "help out" people who have their own regular income that satisfies their means tested benefits!

Vader

Ummm - do you not understand that between parents and their offspring no matter how old they are (the children), you want to try and make life a little easier for them.

Both of my children claimed benefits, and to be honest it upset me to see them struggling each week. If there is anything that I can do for them I will do it. Be it buying a car, MOT cost, Car tax & Insurance, HB shortfall, clothes for my grandchildren, treats like hairdresser for them both. There are a million and one reasons why being a dad never stops.

I am sure you would do the same, not forgetting your own parents who would feel the benefit of not worrying about the odd bills, a worn out carpet, replaced and a holiday.
I thought we were in a caring society that took care of their own?

moomoomama27

andyandflo wrote: »

Ummm - do you not understand that between parents and their offspring no matter how old they are (the children), you want to try and make life a little easier for them.

Both of my children claimed benefits, and to be honest it upset me to see them struggling each week. If there is anything that I can do for them I will do it. Be it buying a car, MOT cost, Car tax & Insurance, HB shortfall, clothes for my grandchildren, treats like hairdresser for them both. There are a million and one reasons why being a dad never stops.

I am sure you would do the same, not forgetting your own parents who would feel the benefit of not worrying about the odd bills, a worn out carpet, replaced and a holiday.
I thought we were in a caring society that took care of their own?

I don't think anyone would begrudge a parent helping out with the cost of one off things. Clothes/ haircuts etc are treats so no-one would bat an eyelid at a Dad/Grandad doing those things. But you transferring money on a monthly basis to an account of someone on benefit is extra regular income as far as I am aware, and that's where the problems with fraud could be. Which is why I am sure every penny of extra income has to be declared on certain benefits.

andyandflo

moomoomama27 wrote: »

What you are doing is very generous, but by doing this you could be party to her committing benefit fraud! Your daughters have an obligation to declare any extra income to the relevent benefit offices, if they havn't done that it's fraud plain and simple, and provable as a standing order has been set between two bank accounts. Your daughters bank account can be accessed by the DWP and if they saw those regular transactions not being declared then she would be in alot of trouble, So be careful!

And so it appears!! a ridiculous situation. It seems there are two choices. 1. Stand by and watch your children struggle on benefit or 2. help to reduce the welfare bill by making voluntary contributions to my children to enable the State to reduce their benefit payments.

For me the 1st will never happen and from now on, neither will the 2nd option!!
And thanks for the warning, I will certainly change the way I make the payments - cash and not to be banked in my daughter's account. In future I will pay bills for her.

Fraud indeed!!!

andyandflo

moomoomama27 wrote: »

I don't think anyone would begrudge a parent helping out with the cost of one off things. Clothes/ haircuts etc are treats so no-one would bat an eyelid at a Dad/Grandad doing those things. But you transferring money on a monthly basis to an account of someone on benefit is extra regular income as far as I am aware, and that's where the problems with fraud could be. Which is why I am sure every penny of extra income has to be declared on certain benefits.

Yes so it seems!!!

I am under no obligation to make these payments - I can stop them when I want or increase them as I so wish.

But I agree I may have been foolish. That is stopping. There is no way that with my money my daughter will be no better off.

The system is changing tomorrow & thanks for your help & advice

Robbie64

One off or irregular payments aren't going to affect benefit. Paying for a holiday or buying a new carpet or indeed furnishing an entire house will not affect benefit. However paying a sum of money every week or month or paying bills on an ongoing or fairly regular basis will.

Taking care of your own and helping out with bills and other outgoings does not conflict with rules in means tested benefits. The idea behind means tested benefits is to top up income to an amount laid down by Parliament. Means tested benefit rates are maximum amounts that the benefit authorities will pay. They are not a fixed amount that will always be payable. People are supposed to look to their own resources first and then to look to the State to top up their resources if it is necessary. And if you want to be equitable - if two people claim means tested benefits and one has parents that pay all bills, buy food etc and the other can't afford to do that should both claimants receive the same help from the state when one would be considerably better off as a result?

Vader123

andyandflo wrote: »

I thought we were in a caring society that took care of their own?

Yes but you are not "taking care of your own" are you.

Your children/parents are asking the state to intervene in their lives to provide them their income.

That intervention comes with rules. One of those rules is about declaring income.

What you can't see is that you want it both ways. You want to help the family (don't we all) but you also want the tax payers.

Your need for intervention and bonds can't be that strong as you say you will not pay for something if it means loosing money from the state.

Can you not see the problem?

Vader