Going from WTC to Universal Credit can I put my excess savings into an ISA or give to my children?

Beachcomber372

I am currently on Working Tax Credits which I believe does not have an upper limit on savings but I also understand that Working Tax Credits will eventually be replaced with Universal Credit which does have a limit on savings.
Now I appreciate that Universal Credit is really for people that are struggling but it has taken me a long time to save this money and I don't really want to lose it.
So can I put my extra savings into an ISA or would that still count as savings in the eyes of Universal Credit?
If that is the case can I give the extra savings to my children as Premium bonds or some other type of savings account?

Rubyroobs

It is still classed as savings wherever it is. You cannot give it away as that would be deprivation of capital. However for those who go onto Universal credit by managed migration I believe there may be some protection of savings ? Hopefully someone will come along to confirm that.

Alter_ego

Rubyroobs has given the polite version of the answer.  My take on it is that I don't see why I should support people who can afford to support themselves.

calcotti

Rubyroobs said:

It is still classed as savings wherever it is. You cannot give it away as that would be deprivation of capital. However for those who go onto Universal credit by managed migration I believe there may be some protection of savings ? Hopefully someone will come along to confirm that.

When managed migration occurs the savings limit is waived for 12 months. After that UC entitlement will end if savings exceed £16,000. The lack of capital limit on Tax Credits was always an anomaly.

if the money is put into an pension pension it would be ignored - but obviously it is then inaccessible until age 55 (or later as the age limit is likely to be raised).

poppy12345

Beachcomber372 said:

So can I put my extra savings into an ISA or would that still count as savings in the eyes of Universal Credit?
If that is the case can I give the extra savings to my children as Premium bonds or some other type of savings account?

Put simply, no you can't. Giving your money away will be classed as deprivation of capital. Although, managed migration is quite some years off yet, unless a change of circustances promts a move in the mean time, you'll have no need to claim.

Beachcomber372

poppy12345 said:

Beachcomber372 said:

So can I put my extra savings into an ISA or would that still count as savings in the eyes of Universal Credit?
If that is the case can I give the extra savings to my children as Premium bonds or some other type of savings account?

Put simply, no you can't. Giving your money away will be classed as deprivation of capital. Although, managed migration is quite some years off yet, unless a change of circustances promts a move in the mean time, you'll have no need to claim.

poppy12345 said:

Beachcomber372 said:

So can I put my extra savings into an ISA or would that still count as savings in the eyes of Universal Credit?
If that is the case can I give the extra savings to my children as Premium bonds or some other type of savings account?

Put simply, no you can't. Giving your money away will be classed as deprivation of capital. Although, managed migration is quite some years off yet, unless a change of circustances promts a move in the mean time, you'll have no need to claim.

so does this mean that it will be some years before Universal Credit will replace my Working Tax Credits?

poppy12345

Beachcomber372 said:

poppy12345 said:

Beachcomber372 said:

So can I put my extra savings into an ISA or would that still count as savings in the eyes of Universal Credit?
If that is the case can I give the extra savings to my children as Premium bonds or some other type of savings account?

Put simply, no you can't. Giving your money away will be classed as deprivation of capital. Although, managed migration is quite some years off yet, unless a change of circustances promts a move in the mean time, you'll have no need to claim.

poppy12345 said:

Beachcomber372 said:

So can I put my extra savings into an ISA or would that still count as savings in the eyes of Universal Credit?
If that is the case can I give the extra savings to my children as Premium bonds or some other type of savings account?

Put simply, no you can't. Giving your money away will be classed as deprivation of capital. Although, managed migration is quite some years off yet, unless a change of circustances promts a move in the mean time, you'll have no need to claim.

so does this mean that it will be some years before Universal Credit will replace my Working Tax Credits?

Potentially at least 3 years unless a change of circumstances prompts a move in the meantime.

calcotti

Beachcomber372 said: so does this mean that it will be some years before Universal Credit will replace my Working Tax Credits?

Managed migration is planned to be complete by 2024 but OBR had suggested 2026 was  more plausible, however that was before COVID. Whether on balance progress will have been delayed (because progress on managed migration has been suspended) or speeded up by COVID (because a lot of people have naturally migrated) nobody knows.

Beachcomber372

poppy12345 said:

Beachcomber372 said:

So can I put my extra savings into an ISA or would that still count as savings in the eyes of Universal Credit?
If that is the case can I give the extra savings to my children as Premium bonds or some other type of savings account?

Put simply, no you can't. Giving your money away will be classed as deprivation of capital. Although, managed migration is quite some years off yet, unless a change of circustances promts a move in the mean time, you'll have no need to claim.

Just found this online regarding putting money into children's Premium Bonds and Universal Credit on Paul Lewis' Radio Times money page
Quote : " Claire writes: “I have gifted my grandchildren £15,000 of premium bonds each.

As a single mother with three children under 16, my daughter gets tax credits and is worried this money may affect it or her claim to Universal Credit, now or in the future. Could you please clarify?”

Paul Lewis replies: The good news is that for both tax credits and Universal Credit, investments owned by children do not count as the parent’s, and so do not affect those benefits, and nor do any prizes they may win. However, other older means tested benefits, such as Income  Support and Jobseeker’s Allowance, may be affected." Unquote

calcotti

That is completely different to what you suggesting.
The quote is about a grand parent gifting money to a grandchild and confirms that the money owned by the grandchild does not affect their parent.
You are asking about gifting money to your child.
In the example, if the grandparent wanted to claim benefits they could be treated as still having the money they had gifted to the grandchild.

poppy12345

Beachcomber372 said:

poppy12345 said:

Beachcomber372 said:

So can I put my extra savings into an ISA or would that still count as savings in the eyes of Universal Credit?
If that is the case can I give the extra savings to my children as Premium bonds or some other type of savings account?

Put simply, no you can't. Giving your money away will be classed as deprivation of capital. Although, managed migration is quite some years off yet, unless a change of circustances promts a move in the mean time, you'll have no need to claim.

Just found this online regarding putting money into children's Premium Bonds and Universal Credit on Paul Lewis' Radio Times money page
Quote : " Claire writes: “I have gifted my grandchildren £15,000 of premium bonds each.

As a single mother with three children under 16, my daughter gets tax credits and is worried this money may affect it or her claim to Universal Credit, now or in the future. Could you please clarify?”

Paul Lewis replies: The good news is that for both tax credits and Universal Credit, investments owned by children do not count as the parent’s, and so do not affect those benefits, and nor do any prizes they may win. However, other older means tested benefits, such as Income  Support and Jobseeker’s Allowance, may be affected." Unquote

You came here for advice, which was given. It doesn't matter how much you look for a different answer you won't find one because the advice you've been given a few times through out the thread, is the correct advice.