junior isa and uc

chickenlicken99

I have junior isa's that I pay into regularly. The total amount in them is around 10k when uc comes in will this be classed as my savings.


I do not have access to this money.


if I continue to pay into them us this deprivation of capital?

chickenlicken99

I currently rec ctc

chickenlicken99

No other benefits

paragon909

You could have just edited your first post adding additional information.

Income based benefits will be effected by your 10k savings.

A quick google search, Gives all the answers...

How the Amount of Your Savings Affects Your Eligibility for State Benefits
For those benefits which are affected by savings, the basic rule is that if you have savings above the upper savings limit, which is currently £16,000, you will not be eligible to receive any benefit. If you have savings below the lower savings limit, currently £6000, your benefits will be unaffected. (Note that these values can change over time, so you will need to check for the latest values.)

For savings in between the two limits, your savings are assumed to yield a weekly “tariff income” of £1 for every £250 of savings. This equates to an assumed annual tariff income of approximately £50 for every £250 of savings, equivalent to an interest rate of 20%, which is clearly absurd and unattainable in the real world. Nonetheless, this is the basis the government uses for their calculations. The benefit payments you receive each week will be reduced by your assumed tariff income. So, if the lower limit is £6000, and you have £10,000 saved, £4000 of that will be counted. £4000 divided by 250 is 16, so you will get £16 less per week in benefits.

chickenlicken99

Even though it is children's savings that I cannot touch only they can when they are 16/18??

dirtydingismagee

I see where OP is coming from, having been wondering the same myself.

We have three kids, two eldest have child trust funds as they were eligible at the time, as well as two 'junior saver' type accounts each at two different high street banks.

Youngest has a Junior ISA and a 'junior saver' at the Halifax....

All three will also soon have money resulting from injuries in a car accident awarded to them, although it is held by the court until they are 18 in bonds/stocks/shares or similar.

At the moment, our kids have about £18,000 between them. So am I to assume the little CTC we get will be cut to zero under UC, because there's an assumption we'll just dip into the children's savings to buy bread and milk? Flippin joke

NYGiants

dirtydingismagee wrote: »

I see where OP is coming from, having been wondering the same myself.

We have three kids, two eldest have child trust funds as they were eligible at the time, as well as two 'junior saver' type accounts each at two different high street banks.

Youngest has a Junior ISA and a 'junior saver' at the Halifax....

All three will also soon have money resulting from injuries in a car accident awarded to them, although it is held by the court until they are 18 in bonds/stocks/shares or similar.

At the moment, our kids have about £18,000 between them. So am I to assume the little CTC we get will be cut to zero under UC, because there's an assumption we'll just dip into the children's savings to buy bread and milk? Flippin joke

The difference is that your children have the money already awarded, the OP is hoping to keep funding the Junior ISA regularly whilst still claiming maximum benefits; effectively the taxpayer would be funding the Junior ISA.

pmlindyloo

chickenlicken99 wrote: »

I have junior isa's that I pay into regularly. The total amount in them is around 10k when uc comes in will this be classed as my savings.


I do not have access to this money.


if I continue to pay into them us this deprivation of capital?

The amount in your children's Junior ISAs will not be taken into account as capital for UC purposes as capital is calculated at the surrender value.

http://www.legislation.gov.uk/uksi/2013/376/made

number 49

There is no surrender value to Junior ISAs as you cannot access them. They are locked in until the children reach the specified age.

As regards deprivation of capital and continuing to pay into the ISAs then it would have to be proved that you deliberately paid large amounts of your capital/savings into the children's ISAs in order to claim UC or get more UC.

There are no rules as regarding how you spend your money unless you are deliberately doing so to gain more UC or to be able to claim UC.

People have the right to spend their money how they like. Otherwise people on benefits would have their benefits stopped if they dared to live on McDonalds all week, smoke and drink when they wanted, spent all their money on iphones etc.

chickenlicken99

I pay birthday money Xmas into them. At the moment I can do this. What I want to know is if or when uc comes in are the children's junior isas going to be classed as my savings? And will any payments I then make be classed as deprivation?

densol_2

chickenlicken99 wrote: »

I pay birthday money Xmas into them. At the moment I can do this. What I want to know is if or when uc comes in are the children's junior isas going to be classed as my savings? And will any payments I then make be classed as deprivation?

??

Pmlindyloo has just painstakingly answered your query ! I had some info about transitional arrangements, but I wont bother

chickenlicken99

Thank you pmlindyloo n for the link.

As for the other poster if youn could post re transitional arrangements ibwould appreciate it

Sorry for spelling mistake mse n my phone dont seem to go well together I cant seem to go bck n correct without deleting the whole lot