Universal Credit and voluntary redundancy questions.

GangstaNappa

I am currently on furlough, on UC and have been given the opportunity to take voluntary redundancy. After almost 15 years, the package would be worth around £20k

Can I put money into my 2 year old son’s savings account or open an ISA or will that count as my income? He can’t touch it until he’s 18.

How does a trust work if we opened a trust for him to buy a house? 

Am I allowed to gift money to family that helped us? Or still taken into account 

Can I spend the money on things e.g. for my business and home/garden? I make wedding stationery and was wanting to build a cabin to work from instead of my kitchen and also fit a wet room. How about a holiday?

Will the claim stop then need to reapply? Or will it remain open and just update and recalculate each month.

Sorry for all the questions, it’s just a huge decision to make for me and my family.

KatrinaWaves

You cant transfer money to your children or into a trust, you will still be counted as having it. You cannot gift money to family.

Fitting a wet room could be considered okay if your bathroom needs refitting or there is need for such a wet room, if its just for the sake of it, then possibly not. Same for the cabin for your business, If they consider it reasonable to get your self employed business going to get you off UC, then they may consider it suitable. Building a swanky 20k summerhouse as a 'work cabin' may not.

calcotti

When you get the money you will have to report it and your UC claim will close. You will not be paid anything for the assessment period in which you receive the money. Once you have less than £16,000 in total you will be able to reclaim but your entitlement will be reduced by £4.35/month for every £250, or part thereof, above £6,000.

If you have any debts you could pay these off. If you have a mortgage you could pay off some of the mortgage. Paying off debt is not deprivation of capital.

When you reclaim you may be required to explain how the money has been spent and to justify that spending. If it is considered that you have unreasonably deprived yourself of capital then you will be treated as if you still have it.

tacpot12

The best option will be to take the redundancy and get another job. Keep making the wedding stationery as a sideline until the business can support you fully without needing to claim benefits; that you you get to keep the £15K and don't need to justify how you spend it to the DWP.