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

freesha

I'm not paying for YOUR benefits so you can save them and not live off them, which is what they are for. No thanks

FBaby

Surely if you've managed to save over £16k, you don't need the level of tax credits you currently receive. 

It is right this loophole is finally coming to an end.

poppy12345

FBaby said:

Surely if you've managed to save over £16k, you don't need the level of tax credits you currently receive. 

Savings have no impact at all on tax credits, unless interest earned is more than £300.

KatrinaWaves

poppy12345 said:

FBaby said:

Surely if you've managed to save over £16k, you don't need the level of tax credits you currently receive. 

Savings have no impact at all on tax credits, unless interest earned is more than £300.

Yeah but that’s not what FBaby is saying...

She is saying that if you can amass such savings on WTC than clearly the help and support of this benefit isn’t needed. Nothing to do with capital affecting WTC. It’s a discussion point, but yeah. 

Beachcomber372

freesha said:

I'm not paying for YOUR benefits so you can save them and not live off them, which is what they are for. No thanks

That's a fair comment but I only managed to save over 20 years by not having a car and working locally, not drinking or smoking and rarely eating out and generally being careful and since this is a money saving forum I thought I would ask the question.

calcotti

Beachcomber372 said:

freesha said:

I'm not paying for YOUR benefits so you can save them and not live off them, which is what they are for. No thanks

That's a fair comment but I only managed to save over 20 years by not having a car and working locally, not drinking or smoking and rarely eating out and generally being careful and since this is a money saving forum I thought I would ask the question.

Which you are entitled to do. Unfortunately, from your point of view, Universal Credit will remove the possibility of receiving means tested benefit with savings/capital over £16,000 (subject to specified disregards). As I noted earlier Tax Credits were an anomaly in this regard.

andrewmp

You're not claiming universal credit now and have no intention of ever claiming. If you feel like saving for your kids in a junior ISA then you're doing nothing wrong at all.

If, in future, you happen to be moved to UC then money in a junior ISA isn't classed as capital.

WillowCat

freesha said:

I'm not paying for YOUR benefits so you can save them and not live off them, which is what they are for. No thanks

You'll hate me than.  I put a big chunk of my earnings into my pension, which entitles me to more UC.  In fact the £86 a month corona uplift has gone straight into my pension, and because of the extra UC, and tax rebate, that £86 a month income I forego in my hand turns into £290 a month into my pension.
On the other hand I'd much rather my OH wasn't severely disabled and was capable of working and so we wouldn't be entitled to UC at all.

calcotti

WillowCat said:

freesha said:

I'm not paying for YOUR benefits so you can save them and not live off them, which is what they are for. No thanks

You'll hate me than.  I put a big chunk of my earnings into my pension, which entitles me to more UC.  In fact the £86 a month corona uplift has gone straight into my pension, and because of the extra UC, and tax rebate, that £86 a month income I forego in my hand turns into £290 a month into my pension.
On the other hand I'd much rather my OH wasn't severely disabled and was capable of working and so we wouldn't be entitled to UC at all.

Have you taken advantage of the Help to Save scheme (if you meet the earnings condition)?
 https://www.moneysavingexpert.com/savings/help-to-save/

Beachcomber372

andrewmp said:

You're not claiming universal credit now and have no intention of ever claiming. If you feel like saving for your kids in a junior ISA then you're doing nothing wrong at all.

If, in future, you happen to be moved to UC then money in a junior ISA isn't classed as capital.

I seem to be getting mixed messages here. It would seem unfair if I could'nt give some money to my kids to give them a head start because surely the Working Families Tax Credits was created to aid families and their children?