Help!! Do child "savings" affect JSA?

Dijor

Hi All, My husband has just been made redundant (as from 31st December) after working for 15 years for the same company.


A while back his parents asked if they could purchase premium bonds in their names as they had reached the maximum in their own names. Each child now has £10,000 invested in their names in premium bonds, even though they receive none of the benefits/wins. Does anyone know how will this affect any jobseekers allowance my husband may be entitled to and should we close the accounts as soon as possible.....

bloolagoon

Is your husbands/your names tee on the accounts?

Jobseeeker

Dijor wrote: »

A while back his parents asked if they could purchase premium bonds in their names as they had reached the maximum in their own names. Each child now has £10,000 invested in their names in premium bonds, even though they receive none of the benefits/wins. .....

Did they purchase them in your husband's name or your children's names?

cattie

I'm not sure if it will affect JSA but will certainly affect any means tested benefits you might be entitled to due to your husband being out of work.

You're in a sticky situation really, as if you close the accounts, you could be asked where the money is if it were to show up on data matching systems DWP use. And saying the money actually belonged to a relative is an age old story they often hear from people who have kept quiet about their true assets.

However, it probably would be wise to have nothing but their own money or yours in your childrens names as you just never know when it will throw up an unexpected problem for you.

xylophone

How exactly are these bonds held?

Dunroamin

Dijor wrote: »

Hi All, My husband has just been made redundant (as from 31st December) after working for 15 years for the same company.


A while back his parents asked if they could purchase premium bonds in their names as they had reached the maximum in their own names. Each child now has £10,000 invested in their names in premium bonds, even though they receive none of the benefits/wins. Does anyone know how will this affect any jobseekers allowance my husband may be entitled to and should we close the accounts as soon as possible.....

Why don't they get any benefits and wins - how do you manage to keep these from them?

Sky_

Dijor wrote: »

Hi All, My husband has just been made redundant (as from 31st December) after working for 15 years for the same company.


A while back his parents asked if they could purchase premium bonds in their names as they had reached the maximum in their own names. Each child now has £10,000 invested in their names in premium bonds, even though they receive none of the benefits/wins. Does anyone know how will this affect any jobseekers allowance my husband may be entitled to and should we close the accounts as soon as possible.....

Dunroamin wrote: »

Why don't they get any benefits and wins - how do you manage to keep these from them?

I read it as the grandparents still owning the bonds but using the children's names/identities to increase the amount they (the grandparents) have, over and above the amount actually allowed per person.

If that is the case (I hope I've misunderstood), then it is a very sticky situation indeed!

bestpud

As far as I am aware, so long as you can prove the money was deposited by grandparents, it won't affect you.

I hope the grandparents didn't do it so they could hide capital and claim means tested benefits though, as one of you is going to come unstuck!

cattie

bestpud wrote: »

As far as I am aware, so long as you can prove the money was deposited by grandparents, it won't affect you.

It won't matter who made the deposit, if any child has over £3k in a savings or similar account, it is taken into consideration & counts towards any parents savings limit if they claim a means tested benefit.

NYM

Grandparents can buy the bonds but have to nominate one of the child’s parents or guardians to look after the Bonds until the child is 16. Any prizes will be paid to the parent or guardian. And only the parent or guardian will be able to cash in the Bonds.

http://www.nsandi.com/savings-premium-bonds?tabid=c#buyingforchild

silvercar

I read the OP as child of the parents ie the husband's name has been used to put the grandparents excess premium bond stash.

Happy to be corrected, OP needs to clarify.