£16,000 savings limit

pipkin71

A quick question, please

As a home educator, our LEA has agreed just short of £8,000 towards my childrens education for this year.

This will take my account over the £16,000 limit for benefits once I put the cheque in the bank.

As this cheque is specifically to be spent on their education and cannot be spent on myself, otherwise I would be prosecuted, will it still affect benefits, at all? If not, does anyone know under which clause this would fall, should my bank statements be looked at?

Thanks :beer:

nannytone_2

dont they insist on a dedicated account for this money?

i get direct payments from the council and it goes into a seperate account, only used for this money.
i use a seperate company to manage this account for me, and i have no access to it apart from through this company.

i find it strange that the council are allowing you to 'mingle' this money with your own

pmlindyloo

If you haven't received the money yet then I think Nannytone has a good point.

Since receiving a Home Educator's grant is rather unusual I would be asking your LA about a dedicated account.

If they just send a cheque then I suspect you will have to ask the relevant benefits organisation how this money can be earmarked for the children.

Logically, because you say that there are consequences if the money is not spent correctly, I would have thought that you would have to keep receipts etc to show, so a dedicated account would seem the most appropriate way forward.

HappyMJ

I would go with the above advice as well. A dedicated account and get council to ignore the balance of it. It's not as if it's long term savings. It's money set aside to be spent over the next 12 months.

pipkin71

nannytone wrote: »

dont they insist on a dedicated account for this money?

i get direct payments from the council and it goes into a seperate account, only used for this money.
i use a seperate company to manage this account for me, and i have no access to it apart from through this company.

i find it strange that the council are allowing you to 'mingle' this money with your own

No dedicated account.

I received it last year for one child, in the form of a cheque as well, just had to sign a form stating that it would be used for her education.

It would be easier with a dedicated account as this is how I manage direct payments but it's paid via cheque.

nannytone_2

thats a veru haphazard way of doing things,

i have to send a bank statement every month, along side invoices to show where every single penny is going. and rightly so, because it is tax payers money.

i think you'd be foolish not to set up a seperate account, where every penny can be easily and accurately accounted fim sure if you explain the situation the can pay the cheque directly to a dedicated account

pipkin71

pmlindyloo wrote: »

If you haven't received the money yet then I think Nannytone has a good point.

Since receiving a Home Educator's grant is rather unusual I would be asking your LA about a dedicated account.

If they just send a cheque then I suspect you will have to ask the relevant benefits organisation how this money can be earmarked for the children.

Logically, because you say that there are consequences if the money is not spent correctly, I would have thought that you would have to keep receipts etc to show, so a dedicated account would seem the most appropriate way forward.

I had to sign a form stating that they can check what the money has been spent on and if it is not spent on what I have applied for [I gave the LEA a list of what I would like to buy for the children] then they will seek to prosecute as it would be fraud to spend it on anything else.

I will keep receipts so can prove the money is not for my benefit, it's just the worry that the cheque will take my account over the limit for benefits.

nannytone_2

to be honest im shocked.
im not doubting you for a secons... it is the way the council are acting that bothers me.

they say the 'can' check.
they should be oblihed to check that it is used properly ( again im not doubting that you spend it correctly)

for the council to so complacent when using other peoples money is astonishing

mazza111

I would set up a separate account for it in all honesty.

My mum's got one to pay for her carers. They pay it in, carer company takes it out. As long as she can show the bank statements and bills on request, all is fine. But I think a separate account is the way to go

Whiteknight

Slightly off topic but what happens to any spare money at the end of the year?

bloolagoon

Not that OP should share her details but there are reasons why people cannot open secondary current accounts, perhaps they have genuine reasons and as there will be a very detailed audit train I do not see how it can go over the savings limit.