Children's savings

sarahgreen34

Sorry if this has been posted before but I couldn't find anything.

We currently receive child tax credit and working tax credits (working tax credits will go when my maternity leave is over) but I want to prepare for when (hopefully 'if') we get moved across to universal credit. We currently have savings (going down while I'm on mat leave) but it's my children's savings I'm concerned about at the moment. It's their money and we would never use it so I want to protect it for them and not count along with our savings. Their accounts are in their own names but I manage their accounts so have access. Would it be best to move their money to junior ISAs or do you have any other suggestions? Would this be OK and not classed as a deprivation of income?

Thanks in advance for any advice you have.

calcotti

Whether the money is in an ISA or not will make no difference

There is a DWP guidancehere https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/618960/admh1.pdf

“Ownership of capital of a child or young person
H1077 Capital owned either legally or beneficially by a dependent child or qualifying young person is not to be included in the capital of the claimant. However, the DM may still need to make enquiries about such capital if it appears to be owned by the claimant but is actually beneficially owned by a child or young person for whom they are responsible.”
There are further explanatory paragraphs after this.

Child’s savings should be ignored but DWP may ask about source of the savings, if they are aware of them, for the obvious reason of preventing claimants hiding their own money in child accounts.

tazwhoever

Calcotti is spot on. When I was working, I used to save for my children. When I became sick and was concerned when I applied for HB. They never took children's saving into account.

But doesn't mean a day before applying for HB withdrawing your money and saving it in children. That will be illegal.

xylophone

Might they not be better in a JISA anyway?

Are they receiving an interest rate higher than 3.6%?

https://www.coventrybuildingsociety.co.uk/consumer/product/savings/children/junior-cash-isa.html

tazwhoever

venison wrote: »

It used to be that they only wanted to know if child's savings were over £3000

Is this the current regulation?
What happens if it's over 3k for UC?

Currently, I am on ESA and HB.

calcotti

tazwhoever wrote: »

Is this the current regulation?
What happens if it's over 3k for UC?

Currently, I am on ESA and HB.

The guidance I quoted is from Advice to Decision Makers guidance used for dealing with UC claims.