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

NedS

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.

I take the opposite view as here we must look at the bigger picture. You are taking advantage of current incentives to save more for your retirement, and in by doing so, the Government recognise they will hopefully not need to support you (or will need to support you less) for a potentially lengthy retirement of 30+ years because you have saved hard to make provision to support yourself. The number of people who have little to no provision to support themselves in retirement is staggering, and with decreasing home ownership, the cost to the tax payer will be huge. Well done to you for increasing your provision to support yourself in later life rather than spending everything you have now at the expense of being dependent on the tax payer later.

poppy12345

Beachcomber372 said:

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?

I'm not sure why you think you're getting mixed messages, it's quite clear. At the moment you're claiming tax credits, so savings don't affect this. In the future when you claim Universal Credit, giving your money away, even to children will be classed as deprivation of capital, although the first year after you claim your savings will be disregarded.

Beachcomber372

poppy12345 said:

Beachcomber372 said:

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?

I'm not sure why you think you're getting mixed messages, it's quite clear. At the moment you're claiming tax credits, so savings don't affect this. In the future when you claim Universal Credit, giving your money away, even to children will be classed as deprivation of capital, although the first year after you claim your savings will be disregarded.

So, if I put money into say Junior isa's or junior premium bonds now before the transition to Universal Credit that would be OK?

WillowCat

calcotti said:

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/

Not yet, though I'm planning to.  I get a better return from the pension savings, and I'm only 18 months or so away from being able to access them.  

poppy12345

Beachcomber372 said:

poppy12345 said:

Beachcomber372 said:

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?

I'm not sure why you think you're getting mixed messages, it's quite clear. At the moment you're claiming tax credits, so savings don't affect this. In the future when you claim Universal Credit, giving your money away, even to children will be classed as deprivation of capital, although the first year after you claim your savings will be disregarded.

So, if I put money into say Junior isa's or junior premium bonds now before the transition to Universal Credit that would be OK?

That will depend on the future and no one can predict that. If you have a change of circumstances in the near future which prompts a move to UC and you've given your savings to your children then this will be deprivation of capital. The savings will only be disregarded when managed migration starts.

binao

poppy12345 said:

Beachcomber372 said:

poppy12345 said:

Beachcomber372 said:

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?

I'm not sure why you think you're getting mixed messages, it's quite clear. At the moment you're claiming tax credits, so savings don't affect this. In the future when you claim Universal Credit, giving your money away, even to children will be classed as deprivation of capital, although the first year after you claim your savings will be disregarded.

So, if I put money into say Junior isa's or junior premium bonds now before the transition to Universal Credit that would be OK?

That will depend on the future and no one can predict that. If you have a change of circumstances in the near future which prompts a move to UC and you've given your savings to your children then this will be deprivation of capital. The savings will only be disregarded when managed migration starts.

As a previous poster said, then the disregard is only for 12 months.

Good luck.

Spoonie_Turtle

poppy12345 said:

Beachcomber372 said:

poppy12345 said:

Beachcomber372 said:

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?

I'm not sure why you think you're getting mixed messages, it's quite clear. At the moment you're claiming tax credits, so savings don't affect this. In the future when you claim Universal Credit, giving your money away, even to children will be classed as deprivation of capital, although the first year after you claim your savings will be disregarded.

So, if I put money into say Junior isa's or junior premium bonds now before the transition to Universal Credit that would be OK?

That will depend on the future and no one can predict that. If you have a change of circumstances in the near future which prompts a move to UC and you've given your savings to your children then this will be deprivation of capital. The savings will only be disregarded when managed migration starts.

Technically the onus is on DWP to prove the intention was to increase entitlement to benefits.

So if you anticipate a change of circumstances that would require you to claim UC in the near future (I don't know what you or they class as the near future ... I guess as with all of these areas it may come down to what would be reasonable to expect to foresee?) then they may have a case. If you don't expect to need to claim UC other than when DWP decide it's time to transfer you, they are less likely to have a case.

poppy12345

binao said:

poppy12345 said:

Beachcomber372 said:

poppy12345 said:

Beachcomber372 said:

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?

I'm not sure why you think you're getting mixed messages, it's quite clear. At the moment you're claiming tax credits, so savings don't affect this. In the future when you claim Universal Credit, giving your money away, even to children will be classed as deprivation of capital, although the first year after you claim your savings will be disregarded.

So, if I put money into say Junior isa's or junior premium bonds now before the transition to Universal Credit that would be OK?

That will depend on the future and no one can predict that. If you have a change of circumstances in the near future which prompts a move to UC and you've given your savings to your children then this will be deprivation of capital. The savings will only be disregarded when managed migration starts.

As a previous poster said, then the disregard is only for 12 months.

Good luck.

Yes, which was me. It just seems like the OP doesn't seem to understand the rules of some means tested benefits.

binao

poppy12345 said:

binao said:

poppy12345 said:

Beachcomber372 said:

poppy12345 said:

Beachcomber372 said:

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?

I'm not sure why you think you're getting mixed messages, it's quite clear. At the moment you're claiming tax credits, so savings don't affect this. In the future when you claim Universal Credit, giving your money away, even to children will be classed as deprivation of capital, although the first year after you claim your savings will be disregarded.

So, if I put money into say Junior isa's or junior premium bonds now before the transition to Universal Credit that would be OK?

That will depend on the future and no one can predict that. If you have a change of circumstances in the near future which prompts a move to UC and you've given your savings to your children then this will be deprivation of capital. The savings will only be disregarded when managed migration starts.

As a previous poster said, then the disregard is only for 12 months.

Good luck.

Yes, which was me. It just seems like the OP doesn't seem to understand the rules of some means tested benefits.

@poppy12345 we agree once more. 

Most means tested  benefits are a minefield  for the unwary.

OP Many local authorities have a benefits  officer. Maybe worth a call.

Good luck OP

andrewmp

As I said before.  You might never have to claim UC, anything can happen.

Putting money away now for your kids is something you can do without worry.

If you happen to be moved to UC in a few years time then you'll be fine, it's not your money and you haven't saved just to get more benefits, as you won't.