Can you save for your children and be on benefits .

ofesaver

Hello

I am currently saving as much as i can for my kids future and at the end of this month i will hot the 3k mark . Ive just found out that having savings will effect my benefits once i start hitting the 6k point which i will hit next year . (I receive full benefits due to disability )

so my question is should i just open saving accounts in my children's names and start paying it direct rather than leaving it in my current account every month ???? and will the children having savings over 6k each effect my benefits if they were in their own accounts as they all live at home and won't be moving out in the near future.

Thanks

rogerblack

Addressing purely the legal aspects.
The below applies to ESA, JSA, IS, SDA and UC.

You can deprive yourself of capital.
Any money you put into accounts under the control of another from your savings may be counted as yours.
_HOWEVER_.

Income does not work this way.
If you arrange a trust, or other vehicle which means you absolutely cannot legally ever get access to the money again, and pay into this trust immediately after benefit is received, then it is not capital yet.

Income becomes capital just as the next payment is made.

So - if you get ESA/... and then immediately pay this into the trust - it cannot be classed as capital.

Please note - this will not be the first position taken by the DWP, and the assumption will be that something funny is going on.
The rules however are quite clear on this.
Everything above has to be true - a properly setup trust to which you have no possibility of accessing legally, or transferring the ownership, and money paid into it before that money becomes capital.

ofesaver

right so i understand i need to put it in my children's name where i can't touch it , thats fine as it is entirely for them to have a better future and not have the start in life like i did .

xylophone

Do your children have CTF/JISA?

Money saved into these accounts beyond doubt belongs to the children and can only be accessed by them at the age of 18.

https://www.gov.uk/child-trust-funds/overview

rogerblack

ofesaver wrote: »

right so i understand i need to put it in my children's name where i can't touch it , thats fine as it is entirely for them to have a better future and not have the start in life like i did .

This money absolutely cannot come from your savings, or it counts.
It has to be added every two weeks or whenever your benefit is paid - directly from that money, before the next payment.

missapril75

Able to save £3k between now and next year eh? What's that, between £50 and £100 a week?

Remarkable to do that on means tested benefits. Well done.:cool:

paragon909

I don't really know how people can afford to save money while being on benefits, And with current way of life of things being more expensive, How is this possible. Surely DWP aren't paying someone enough to live and to save up.

Just asking...

HappyMJ

paragon909 wrote: »

I don't really know how people can afford to save money while being on benefits, And with current way of life of things being more expensive, How is this possible. Surely DWP aren't paying someone enough to live and to save up.

Just asking...

It's very easy to live on benefits. I sometimes wonder why I go to the effort of trying to support myself when all I need is a roof over my head, the council tax paid, £140 off my electricity bill every year, free prescriptions, free eye tests and dental and £114.85 between us in cash every week to pay the bills. I always had money left over and that's without children. Very importantly I do not operate a car. I don't have Sky. I do have broadband and a mobile phone which are both essential to looking for work. I'm a money saver and look for every way possible to save on my bills. BTW...I no longer claim benefits. What we really need is financial education so every one knows how to find a deal to save money every week/month.

scootw1

HappyMJ wrote: »

It's very easy to live on benefits. I sometimes wonder why I go to the effort of trying to support myself when all I need is a roof over my head, the council tax paid, £140 off my electricity bill every year, free prescriptions, free eye tests and dental and £114.85 between us in cash every week to pay the bills. I always had money left over and that's without children. Very importantly I do not operate a car. I don't have Sky. I do have broadband and a mobile phone which are both essential to looking for work. I'm a money saver and look for every way possible to save on my bills. BTW...I no longer claim benefits. What we really need is financial education so every one knows how to find a deal to save money every week/month.

i take it you are having a laugh? 62 I get after bedroom tax for all bills and food and toiletries. Near impossible no matter how frugal you are. Of course if you have kids or on top rate ESA then this is probably a different story

konark

It's very easy to live on benefits. I sometimes wonder why I go to the effort of trying to support myself when all I need is a roof over my head, the council tax paid, £140 off my electricity bill every year, free prescriptions, free eye tests and dental and £114.85 between us in cash every week to pay the bills. I always had money left over and that's without children. Very importantly I do not operate a car. I don't have Sky. I do have broadband and a mobile phone which are both essential to looking for work. I'm a money saver and look for every way possible to save on my bills. BTW...I no longer claim benefits. What we really need is financial education so every one knows how to find a deal to save money every week/month.

Council tax not paid, only 70% in my area.

How do you get £140 off your leccy bill? Am I missing something?

FBaby

missapril75 wrote: »

Able to save £3k between now and next year eh? What's that, between £50 and £100 a week?

Remarkable to do that on means tested benefits. Well done.:cool:

Because you can easily get a similar diposable income on disability benefits with children than if you worked and hit the 40% tax bracket.

This is why there is a worry that Cameron might also look at disability benefits, because whereas no-one would argue that disabled people should be able to enjoy a similar life to the average non disabled person, it now comes across that many get to enjoy a life that the average person couldn't possibly afford. Saving £3k a year? How many people on £25K working and supporting children get to do so even when living frugally.