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Income Support and Child Benefit Savings
Comments
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What sort of emergency? Any emergency I could ever have would cost only a few thousand to resolve so I keep instant access to about that much at all times. I thought you said this was for the childrens education later on. It's a good financial decision to prevent access to at least a small amount for university expenses later in life and £25 a month isn't much. It'll give the kids at least £6,000 each when they turn 21 if it's saved from birth and will set them up without having to rely too much on the meagre amount of student loans. Anyway, just a suggestion.I think she would still like access to the money just in case of an emergency.:footie:
Regular savers earn 6% interest (HSBC, First Direct, M&S) Loans cost 2.9% per year (Nationwide) = FREE money. 0 -
If the DWP wasn't informed when each child's savings went over £3000 then, as I understand the rules, she may have been overpaid.
This would result in a claim for that money to be paid back and maybe an investigation for fraud.
Contact the authorities and explain the situation.0 -
What sort of emergency? Any emergency I could ever have would cost only a few thousand to resolve so I keep instant access to about that much at all times. I thought you said this was for the childrens education later on. It's a good financial decision to prevent access to at least a small amount for university expenses later in life and £25 a month isn't much. It'll give the kids at least £6,000 each when they turn 21 if it's saved from birth and will set them up without having to rely too much on the meagre amount of student loans. Anyway, just a suggestion.
Sorry you are right, I will mention this too together with a small emergency fund. And no loss in depreciation
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If the DWP wasn't informed when each child's savings went over £3000 then, as I understand the rules, she may have been overpaid.
This would result in a claim for that money to be paid back and maybe an investigation for fraud.
Contact the authorities and explain the situation.
She has declared the savings and the DWP are deducting an amount from her Income Support.
Hence why the question in the first place.0 -
I am getting a little confused here.
If I've read correctly then it started as money for the kids and now it's money for emergencies.
Sorry, but this is beginning to sound like she has access to too much money to be claiming IS.
If this is because she is receiving a lot of child maintenace then it is worth considering asking the father to put some money into a savings account for the children (assuming it's a private arrangement and not going through CSA).
PS Written before your reply that she is already having money deducted form IS.
Bit about father's maintenance may still be useful.0 -
pmlindyloo wrote: »I am getting a little confused here.
If I've read correctly then it started as money for the kids and now it's money for emergencies.
Sorry, but this is beginning to sound like she has access to too much money to be claiming IS.
If this is because she is receiving a lot of child maintenace then it is worth considering asking the father to put some money into a savings account for the children (assuming it's a private arrangement and not going through CSA).
PS Written before your reply that she is already having money deducted form IS.
Bit about father's maintenance may still be useful.
She is wise with what she spends and sets aside the child benefit payments.0 -
If they know about the savings and the DWP are already deducting an amount from her Income Support if she uses some of the children's savings to buy a car or something then they may class it as deprivation of capital.She has declared the savings and the DWP are deducting an amount from her Income Support.
Hence why the question in the first place.Dum Spiro Spero0 -
She has declared the savings and the DWP are deducting an amount from her Income Support.
Hence why the question in the first place.
If DWP are already making a deduction from her IS because of this money, then clearly it does count as capital. She will be losing £1 for every £250 over the £6k capital limit, which is about £24 p.w. Spending £6k on things that she doesn't really need just to bring her below the £6k limit, so that she then receives an extra £24 p.w. would be silly.0 -
If they know about the savings and the DWP are already deducting an amount from her Income Support if she uses some of the children's savings to buy a car or something then they may class it as deprivation of capital.
As she does not have a car at the moment, I think it can be argued succussfully that she has been saving for a car.0 -
If DWP are already making a deduction from her IS because of this money, then clearly it does count as capital. She will be losing £1 for every £250 over the £6k capital limit, which is about £24 p.w. Spending £6k on things that she doesn't really need just to bring her below the £6k limit, so that she then receives an extra £24 p.w. would be silly.
I am going to pass on happyMJ's advice.
She/kids will be £24, better off.0
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