This will be seen as deprivation, won't it?

realfrankturner

Hi all,

I have been on UC since September, and when I applied I declared I had 10k in savings.

This is savings for my little ones future, so I don't touch it and don't consider it mine, however I appreciate it's classed as my capital since I have access to it.

Since then I have had money off my benefits, about 75 quid a month I think, and the savings remained untouched. I just don't want to touch that money at all for myself and only use it for her.

I want to put the money into a JISA for her, as the interest is much better then sitting in my current account, and it won't be counted as my savings, which is how I treat it anyway, as hers, not mine, but obviously cannot prove that.

If I do it now and then report a change will it be seen as deprivation? Even though it's going into an account that I won't be able to touch, only she will be able to when she is 18 and legally when in the account it is hers.

I am still going to put it into a JISA for her as it's the best thing, but not sure whether to bother reporting it if they are just going to see it as my capital still because of the timing of it. (And I get why). Hopefully find a job soon, applied for over 200 but not even had an interview and am struggling with everything right now.

But least in future if I go on UC again I won't handicap myself as it will be in a JISA way before then, where it should have been ages ago, which is my fault and am being punished for it now.

Thanks

calcotti

You can do but it will be treated as deprivation of capital and the money will still be counted as yours. However you are no worse off that way than if you simply leave the money where it is so if you can get a better interest rate in a JISA it may still be worth doing. You appear to have fully understood the situation.
I think it would still be prudent to report it but when you do so you can make clear that you understand the money will, for benefits purposes, still be treated as yours.

realfrankturner

calcotti said:

You can do but it will be treated as deprivation of capital and the money will still be counted as yours. However you are no worse off that way than if you simply leave the money where it is so if you can get a better interest rate in a JISA it may still be worth doing. You appear to have fully understood the situation.
I think it would still be prudent to report it but when you do so you can make clear that you understand the money will, for benefits purposes, still be treated as yours.

Thanks, that's what I thought, and as said if I have to go on UC again down the line I won't have to then count it in a new application as already in a JISA??
It's a proper pain because I am struggling but am loathe to touch her future savings, feels like I am being punished but appreciate I cannot prove its hers.
It's my fault not putting it into a JISA ages ago
I will report it then once done
Many thanks

Sky_

I wonder if there is a legal workaround--you're presumably allowed to spend some of your savings on living expenses each month, say £1-200?
Could you put the disregard of £6000 into the JISA, then gradually withdraw some of the remaining £4000 for expenses each month and save an amount from your benefits, into the JISA, at the same time . Presumably parents on benefits are allowed to save a little for their children?
If accepted, this would allow 'your' savings to gradually reduce, whilst safeguarding your daughter's money. I may be totally wrong, but it's worth a try and you wouldn't be any worse off if a decision maker still sees it as deprivation of capital.

realfrankturner

Sky_ said:

I wonder if there is a legal workaround--you're presumably allowed to spend some of your savings on living expenses each month, say £1-200?
Could you put the disregard of £6000 into the JISA, then gradually withdraw some of the remaining £4000 for expenses each month and save an amount from your benefits, into the JISA, at the same time . Presumably parents on benefits are allowed to save a little for their children?
If accepted, this would allow 'your' savings to gradually reduce, whilst safeguarding your daughter's money. I may be totally wrong, but it's worth a try and you wouldn't be any worse off if a decision maker still sees it as deprivation of capital.

Thanks for the reply
I don't have any money to save from my benefits, as I am £75 a month less because of the savings, and once the uplift ends that will take up another £80 loss, at that point I am not sure what I am going to do, as I say I am loathe to spend her savings as I worked hard last 7 years building it up for her.
My plan right now is to put £9k into her JISA as it's something I need to do for the interest regardless of anything else, and keep back £1k for emergencies in my current account. (Once I find work I need to move so need a little bit for deposit and man with a van)
I will then report it, and hope for the best, but I do think it will be counted against me.
Then once I find a job (Not looking good, even Mcdonalds turned me down!) come off UC and if I ever need it again in future I can say I only have the 1k (Or whatever is left).
My other worry is if I get a low income job and am still entitled to a little help, the penalty of the savings is always going to count against me even though they will be in a JISA, unless I just cancel the UC, wait 6 months and struggle a bit, and then re-apply.
Appreciate the reply.

Mojisola

realfrankturner said:

My plan right now is to put £9k into her JISA as it's something I need to do for the interest regardless of anything else, and keep back £1k for emergencies in my current account. (Once I find work I need to move so need a little bit for deposit and man with a van)

It won't help your daughter if you end up in debt because you've locked away most of your capital.

In the situation you're in, it's more important to think of the present rather than the future.  I'd put away, at most, half of your savings for her and keep the rest as an emergency fund.

Once you get back on your feet, you can stash away as much as possible to rebuild the lump sum.

realfrankturner

Mojisola said:

realfrankturner said:

My plan right now is to put £9k into her JISA as it's something I need to do for the interest regardless of anything else, and keep back £1k for emergencies in my current account. (Once I find work I need to move so need a little bit for deposit and man with a van)

It won't help your daughter if you end up in debt because you've locked away most of your capital.

In the situation you're in, it's more important to think of the present rather than the future.  I'd put away, at most, half of your savings for her and keep the rest as an emergency fund.

Once you get back on your feet, you can stash away as much as possible to rebuild the lump sum.

Fair point, I can certainly keep back a bit more in case of an emergency.
Only good thing about my life right now apart from my daughter is the fact I can say I am debt free, I am pretty good with money overall but right now am struggling with the penalisation, and if the uplift doesn't get extended I am not sure what I am going to do if I haven't found work.
Thanks

calcotti

realfrankturner said: Thanks, that's what I thought, and as said if I have to go on UC again down the line I won't have to then count it in a new application as already in a JISA??

That would depend on the time interval. If it's far in the future then you would probably b fine, if it's in the near future then it could still be counted as yours.

calcotti

realfrankturner said: My plan right now is to put £9k into her JISA as it's something I need to do for the interest regardless of anything else, and keep back £1k for emergencies in my current account. 

Given that you have no idea how long it will be before you are back in work that is quite restrictive. Once you have locked it away you're lost the safety net for both of you. Even though interest rates may be higher in the JISA I imagine that the actually interest is still not going to amount to much. If it were me I would want to retain access in case it is needed.

realfrankturner

Many thanks, yes I would agree actually.
I am going to do half and half, 5.5k into JISA and 5.5k kept back just in case I think
Again thankyou for the advice.

realfrankturner

Sorry, meant to say 5k into JISA and 5k kept back!