Benefits and Child savings

honeyR

Hello! Does anybody know how much you can have in a child savings account before it effects your housing and council tax benefits?

Kimitatsu

honeyR wrote: »

Hello! Does anybody know how much you can have in a child savings account before it effects your housing and council tax benefits?

There was a big debate about this recently, if the funds for the child are a gift from someone else (grandparent etc) then the money has not come from you and therefore technically is unlimited. However if YOU are saving for the child on a regular basis or adding money to it then the statutory limits apply £6k lower limit and £16k upper limit,

You should also not that if you take withdrawals out of the account on a frequent basis then you can also be percieved as having access to that money.

Its another one of those very grey areas........

dealer_wins

unismartin wrote: »

Hi,
Very wonderful topic..Many peoples can not know the proper steps to save money for the child..my idea is to deposit the amount for baby ..it's help a lot..I want to share some about baby care step by step process..keep sharing..

!!!!!!???? :rotfl::rotfl:

[Deleted User]

I`m not sure about HB but I/S forms ask you to declare ANY childrens savings above £3000

BIAGD

What if the child is over 18 and you give them a gift of an amount when you receive a lump sum........something we have never been able to do for them due to limited wages, since their birth..............I would imagine they would be subject to the tax implications then but are both at Uni. Its our only chance to give them a 'start' to adult life, will we be penalised for doing so?

AnxiousMum

BIAGD wrote: »

What if the child is over 18 and you give them a gift of an amount when you receive a lump sum........something we have never been able to do for them due to limited wages, since their birth..............I would imagine they would be subject to the tax implications then but are both at Uni. Its our only chance to give them a 'start' to adult life, will we be penalised for doing so?

Are you on any means tested benefits? If you come into money and are on benefits, should you not use that money to support yourself? I'm not on benefits (other than CB) we both work full time, and we still can't afford to give our kids anything to 'start their life' with! One is at university on student loans, and if you are on benefits, I would think that your child at university is also getting maintenance grants on top of the loans? Possibly even a bursary from the university?

If you are on means tested benefits, and just hand money over that you have come into - you could be seen as depriving yourself of that income, be deemed to still have the income and so your benefits stopped or reduced for a period of time.

If you're not on means tested benefits - well, it's your money and you can do what you like with it!

BIAGD

Thanks for that AnxiousMum. To get one thing straight. We, have both worked full time for 35+ years and 40+ years respectively! but have never been able to give the kids a 'savings fund' as many seem able; also most things many take for granted have not been guaranteed such as holidays etc., so dont think we havent sat on benefits (which always seems to be the case on here I would hasten to add as soon as it is mentioned) We've worked for everything we have and proud of it.

Unfortunately ill health takes its toll - due to work related injuries, diseases and the dreaded ageing process eh?! which is our situation and not one we enjoy. OH has been medically retired due to ill health - hence the lump sum and we are not on means tested benefits (or hadn't been until a lot of rules seem to be changing, which is another query somewhere else down the line) I am on IB and OH just recently on ESA. We have never claimed ANYTHING prior to this despite being told we could but tbh we were managing and dont take more than we need - yes, there are some people like that!

Yes our sons get a grant and have a part time job.......to help out............ and will have the 12K+ debt for loans to deal with when starting work so will have to pay their dues when the time comes

Here's hoping you keep fit and well and in work for as long as we were able and perhaps you may realise people on benefits are not all scroungers. May you never need to be in the situation to need to claim.

Kind regards

seven-day-weekend

If you are on IB and your husband is on Contributions-based ESA (Not Income-based), and these are the only Benefits you receive, then these are not means-tested as regards savings so you can do what you like with any money. The only thing that will affect them is if there is a Pension of over £85 a week when IB/ESA will be reduced by 50p in the £1 for every pound over £85.

If you are on any means-tested Benefits, then any money you give away could be counted as deliberate deprivation of capital and you will be treated as though you still had the money.

real1314

Kimitatsu wrote: »

There was a big debate about this recently, if the funds for the child are a gift from someone else (grandparent etc) then the money has not come from you and therefore technically is unlimited. However if YOU are saving for the child on a regular basis or adding money to it then the statutory limits apply £6k lower limit and £16k upper limit,

You should also not that if you take withdrawals out of the account on a frequent basis then you can also be percieved as having access to that money.

Its another one of those very grey areas........

Are you sure about this for HB/CTB?

If an account is in a childs name, afaik, it counts. And the limit is £3k. Anything over that and the allowance(s) for the child would not be included in the HB/CTB award assesment.
Unless the regs have been changed in the last 2 years or so?

MrsBartolozzi

I'd second real1314.
My bit of paper showing how they worked out my council tax benefit shows my sons' and my savings lumped together as one amount, so children's savings money will count for HB and CTB purposes. Having said that BIAGD, if you are talking about an adult child (over 18) then I'd think they are no longer your responsibilty legally (iykwim - I'm not suggesting we all kick them out at 18) and so their savings shouldn't count. I should really look into this myself as my 18 yo's savings are still on my form hmm.:think:

real1314

MrsBartolozzi wrote: »

I'd second real1314.
My bit of paper showing how they worked out my council tax benefit shows my sons' and my savings lumped together as one amount, so children's savings money will count for HB and CTB purposes. Having said that BIAGD, if you are talking about an adult child (over 18) then I'd think they are no longer your responsibilty legally (iykwim - I'm not suggesting we all kick them out at 18) and so their savings shouldn't count. I should really look into this myself as my 18 yo's savings are still on my form hmm.:think:

18 or under 18, they should still be dealt with separately from your savings.

An adult (or couple) have a limit of £6k, up to £16k, for most means tested benefits. between £6k-£16k, £1 is taken off for every £250 (£500 for over 60s).

For HB/CTB (and nominally IS/JSA etc) kids have a limit of £3k, anything over this and there's no amount for that child.