Help please?

nervousninny

long time lurker, now in need of assistance and advice, can anyone help?

As of May 13th my hubby was made redundant and has now started a business which is, as expected slow (!!) in getting off the ground, meaning he has had to apply for benefits.

Background to the family set-up so you know what's what.

Husband worked 25 years, never out of work before, earns nothing at mo.
Myself, worked intermittently as we chose for me to work over the years, not currently working but looking, earns nothing at mo
21 year old son earns 12K a year, technically lives here but in reality spends 80% of time with girlfriend and is looking to move out into a flat with her imminently.
17 year old son earns 5.2K A year.


Husband had appointment with jobcentre today where he had to take bank statements etc and was told he was entitled to contributions based JSA but nothing else at all as on paper statements we have almost 15K savings. However, this is set off against debts of 9029.20 that we owe and also 5650 of these 'savings' is actually my children's money that I moved out of their childhood accounts a while ago in order to re-invest in ISA's but did not.

My question is, should I/ am I allowed to pay off our debts and reinvest my kids money to accurately reflect what savings we have, which is actually virtually none, to allow us to get more financial assistance in the short term, or would this be considered duplicitous? Any payments I made to my lines of credit could be backed up by the statements showing what I owe, what I paid and final zero balance, likewise my bank statements show the line of my children's savings being moved into our account, from accounts in their own names and if I opened up them am ISA each I could show the continuation of that line of credit back into their accounts.

I appreciate that this looks mercenary but I consider it more naive, I should have sorted this all out before, but can't believe that we will only get £67(?) a week as a family because of our 'savings' when actually our savings is all destined elsewhere. Also claiming benefits at all is hopefully only a very short term thing as hopefully the husbands business will soon take off and I will get work.

btw the boys pay board in line with their earnings 21 year old pays £200 a month and 17 year old pays £80 a month.

So to surmise, should I clear my debts? Should I move the kids money out back into their own accounts?(or is it considered ours as we have not reinvested it before?) Don't want to appear fraudulent but would like to get all we are due and not be penalised because we 'appear' to have money.

Please advice, really don't want to eff up and be accused of trying to hoodwink the government.

Thanks in advance.(and sorry if this is a bit incoherent, am a little confused at mo, please ask for clarification if needed)

AnxiousMum

From other posts on here, for means tested benefits, they will only accept 'priority debt' payments out of your monies. With children's monies, if you have access to it, then they treat it as being yours. With your debts, if you pay more than the minimum payments due, they will look at that as deprivation of capital - as you don't NEED to pay them off. If you do pay your debts off, and move your monies back into your children's accounts, then they will still treat you as though you have the money - and then you'll be in a lot worse situation.
If the debts were something like rent arrears, council tax etc., then yes, that's a priority - but paying your credit cards, loans etc. in full is not.

nervousninny

So I have really cocked up in not clearing all this before? Or would they have always queried where the money went in such big chunks? I feel, as the person that organises(!!) the familys' finances I have gotten us into real trouble and should have done better, btw how can savings be considered savings if there is equal and opposing debt?

Have I messed up?

McKneff

Childrens money, doesnt exist now,if its in your savings, its classed as yours, why didnt you just move it from their savings directly into Isas for them instead of putting into your account. Bet youre kicking yourself now.

Sorry, its maybe not what you want to hear but that's life.

Hope you'll be all okay, could the kids up their board money temporarily

nervousninny

btw thank you for your help.

nervousninny

I am almost not so concerned about the kids money as I kinda knew I messed up there and can use it in the meantime and owe it to them, but the actual debt, why can I not use my savings to clear that without being penalised?

Darlyd

If it were me I would pay your debts asap as this is the last thing you need on your head when earning £0. And gift your kids the money and get them to put in ISA in their names. I cant see you doing anything wrong here. You could come back in a few months asking for help on your debts, as you have spent all your savings, And get comments such as you should of used your savings to pay off your debts. Surly you will get more than £67 a week? That is less than what the law states a couple needs to live on? I may be wrong though. ?

nervousninny

This is entirely my way of thinking, but that doesn't make it so, so that's why I was asking on here. At the mo I am the main proprietor of feelingveryfoolish.com. Will have to talk to someone in the know, abide by their decision (however unfair it may seem) and get a bloody job asap!!
thanks for advice!!

Darlyd

Go see cab for advice.

Wish you luck with what you decide.

nervousninny

WILL DO AND THANKS-oops shouty, might also bump over the next 24 hours to get more opinions. Thanks again

sunnyone

nervousninny wrote: »

This is entirely my way of thinking, but that doesn't make it so, so that's why I was asking on here. At the mo I am the main proprietor of feelingveryfoolish.com. Will have to talk to someone in the know, abide by their decision (however unfair it may seem) and get a bloody job asap!!
thanks for advice!!

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