How will this affect my benefits?

BigAunty

Here is a table about NDD which summarises the position that the previous posters have outlined. Your local council should also publish this and it should be identical as this is national.

http://www.hackney.gov.uk/f-non-dependant-deductions.htm

xylophone

The father does not pay her any money but puts money in a separate bank account the child has, he has no access to this it is in my gdaughters name.

This might require care from the tax viewpoint unless the account is a CTF/JISA/other tax privileged account.
http://www.hmrc.gov.uk/tdsi/children.htm

renegade

Thanks to you all for your information , especially for the links you provided, it has really helped us to try to get the best for both of us for peace of mind and financially security.:A