childrens savings classed as an asset?

echoes008

Hi there,

When declaring assets for means tested benefit are children's savings taken into account?

I have been putting aside £100 or £200 every month in child savings account for past couple of years.. Account is held in my wife's name but in the passbook its clearly stated that she is a trustee for our child. Child's name is also clearly stated in the passbook. We have been saving this for university fees etc (child is only 9 and so uni is about 7-8 years away).


I asked the bank and building society about it and but according to them this is now classed as savings for my wife and I. We have been told that we are not even responsible for paying tax on it and we don't have to declare it on any of the forms.

Has anyone got any experience of this. Do we need to declare any children's savings on means tested benefits such as council tax rebate, housing benefit or income based JSA.

Thanks. Regards.

ariba10

Perhaps I should put what I have in my children's name, and see what I can get.

zzzLazyDaisy

echoes008 wrote: »

Do we need to declare any children's savings on means tested benefits such as council tax rebate, housing benefit or income based JSA.

Yes, children's savings are taken into account when assessing eligibility for means tested benefits.

Also, re tax on savings - as a parent saving on behalf of the child, if the interest earned is more than £100 per annum, you are also liable to pay tax

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/ManagingMoney/PlanningYourPersonalFinances/DG_10014128

echoes008

zzzLazyDaisy wrote: »

Yes, children's savings are taken into account when assessing eligibility for means tested benefits.

Also, re tax on savings - as a parent saving on behalf of the child, if the interest earned is more than £100 per annum, you are also liable to pay tax

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/ManagingMoney/PlanningYourPersonalFinances/DG_10014128

Thanks. According to this website children's savings less then £3k is ignored. http://www.runnymede.gov.uk/portal/site/runnymede/menuitem.e2f3ce7860aa4368c4a81c10af8ca028/ Its very confusing and not very clear at all.

Oldernotwiser

How can you afford to save £100/200 pm and still be eligible for means tested benefits?

7roland8

Well my two childrens Savings Bonds were under £3k but we still had to produce their certificates for inspection all the the time - mostly for council tax benefit I think.
I said that I didn't class it as 'my' money as it was a few hundred left by their late gran - but it was classed as ours anyway.

Same as Oldernotwise - we can never save anything!

echoes008

Oldernotwiser wrote: »

How can you afford to save £100/200 pm and still be eligible for means tested benefits?

Because I work at the moment and instead of wasting money on unnecessary luxuries, we have been putting some money aside as a future nest egg for our child.
As far as we are concerned that money does not belong to us.

But I have now been put on a notice and I am checking my options if I don't get another job soon.

This seems like another crack pot idea from government. If I had been reckless with my spending then I would be eligible for means tested benefit but because I put some money aside for children's education I get penalised.

echoes008

7roland8 wrote: »

Well my two childrens Savings Bonds were under £3k but we still had to produce their certificates for inspection all the the time - mostly for council tax benefit I think.
I said that I didn't class it as 'my' money as it was a few hundred left by their late gran - but it was classed as ours anyway.

Same as Oldernotwise - we can never save anything!

I can understand you have to produce the certificates for inspection but did they deduct anything because you had some savings in children's names?

Oldernotwiser

echoes008 wrote: »

Because I work at the moment and instead of wasting money on unnecessary luxuries, we have been putting some money aside as a future nest egg for our child.
As far as we are concerned that money does not belong to us.

But I have been put on a notice and I am checking my options if I don't get another job soon.

OK, your post sounded as if you were claiming already, which is why I asked.

Oldernotwiser

echoes008 wrote: »

This seems like another crack pot idea from government. If I had been reckless with my spending then I would be eligible for means tested benefit but because I put some money aside for children's education I get penalised.

But if the money is accessible to you, then you could use it if you wanted.

You surely wouldn't want people who were well off to stick it all in their children's names and then be able to claim public money?

echoes008

Oldernotwiser wrote: »

You surely wouldn't want people who were well off to stick it all in their children's names and then be able to claim public money?

Yes but... I have been saving this money for quite some time now. Not just decided to park this money after I received my redundancy notice.

And I am not well off by any stretch of imagination. I have just been careful with my spending so that I could send my kid to uni.

To prevent rich people evade tax, there is limit on how much you can put aside tax free each year in children's name. I understand the tax implications. But would it also affect the means tested benefits?


But if the money is accessible to you, then you could use it if you wanted.

Presumably if I buy a new car or invest in gold jewellery I would be eligible for government hand outs.....