childrens savings and benefits

DaisyFlower

The savings limit is £6000 before benefits are affected, it doesnt say anywhere that childrens savings are excluded. The only exclusion mentioned is where a recent house sale has taken place and another will be purchased using the money within a set time period.

I would imagine they are taken into account otherwise everyone would just transfer any savings into their childs account and claim.

shazrobo

thanks for advice everyone, might as well spend it then instead of saving for their future, as i have nearly £6000 in the bank myself, left to me by my grandad

cattie

~Chameleon~ wrote: »

I would have thought that if the savings have come from DLA payments, and you can prove that, that it shouldn't affect any of your other benefits as it's not like it's extra income or savings that you haven't declared in order to claim, IYSWIM

Wrong I'm afraid, savings, whether they come from earnings or saved from benefits are classified as savings capital when accessing eligibility for any means tested benefits.

Penny-Pincher!!

I have found this-is it relevant or out dated?

http://www.jobcentreplus.gov.uk/jcp/Partners/Allowancesandbenefits/Dev_010143.xml.html

IS20 - A guide to Income Support

Income and capital

Capital held by a dependant

Capital held by a dependent child under 19, or in certain circumstaces under 20, is ignored unless they own more than £3,000. In that case no personal allowance or premium is payable for that child. However, any family premium will still be paid. See Table A. Where Child Tax Credit has been awarded any capital belonging to a dependent child or young person will not be taken into account when working out your Income Support payment. [Legislation (116)]

I am totally confused:rotfl:

PP
xx

bigbill

http://forums.moneysavingexpert.com/showthread.html?t=457059

~Chameleon~

cattie wrote: »

Wrong I'm afraid, savings, whether they come from earnings or saved from benefits are classified as savings capital when accessing eligibility for any means tested benefits.

So what happens when your savings (from benefits) reach the £6000 threshold then? Do you phone up the DWP and tell them you can't accept this week's payment as this would take you over £6000 limit? Then the following week, having used your savings to live on that week do you phone them again to say your savings are now low enough to accept the payment again???

This could continue week upon week and I'd imagine could become very confusing!!!

shazrobo

even more confused now:o
thanks bigbill for that link
does this mean then that i can continue to save for my sons future, as they get child tax credits, i only get income support for myself?
dont really want to start spending their DLA money for anything other than what i already do, which is funding and running the car, otherwise they would never get out anywhere

bigbill

Four options if you had IS additions for children:

1: Keep their savings below £3,000 each = no change to you IS at all.

2: Let their savings go over £3,000 each = you lose a fortune in IS as all child additions and premiums (Except the Family one) will be lost.

3: Put their money in a child trust fund until their older, this cannot be touched = no change to your IS.

4: Claim Child Tax Credit (CTC Tel: 0845 300 3900) giving the same money as you get from IS for the children = save until your hearts content knowing that their savings will make no difference to your on-going CTC award.

As you already have CTC for the children you have nothing to worry about as option four is already in place for you anyways.

shazrobo

thanks bigbill for clarifying that