regular gifts to family members on benefits

MaryMoneypenny

Hi, I am new here, and anxious to have some advice on whether it is permissible to gift money to my daughter who has a mental health condition and is claiming benefits.  She was awarded UC, but has also claimed New style ESA and was in the assessment phase but has just had the WCA and been told verbally that she will be in the Support Group.  Whilst she has been waiting for her benefits to be sorted out I have paid her £550 per month as a regular voluntary payment to ensure that she has some stability in her income.  ( She was suddenly awarded ESA in March after being told she didn't have enough NI insurance credits, paid a lump sum and then UC asked her for most of that money back- this isn't really helpful for someone trying to find their way out of severe depression)   It seems quite clear to me that the income we ( her parents) give her is voluntary and should be disregarded for purposes of assessing her benefit entitlements, but someone advised me that this would be treated as "unearned income" and I should consider giving her the money in cash, which I am loathe to do, as I would not like her to get into trouble with the DWP. there was nowhere on either the form for UC or ESA to declare this income, but it still worries me and I do not know whether to advise her to declare it or not. It seems that New Style Esa are going to take over most of the payments to her now and I am reluctant to slow down the process of sorting out her claim by advising her to declare something that is not necessary.  I would be grateful for any comments or advice.

Spoonie_Turtle

Gifts of money are disregarded for both ESA and UC.

The only time she'd have to declare anything is if she didn't spend it all and accumulated the leftovers as savings above £6,000, which would need to be declared to UC.  (Savings between £6,000 and £16,000 result in a deduction of £4.35 per £250/part thereof over £6k, savings of over £16k disqualify someone from UC.)  As she had little to no other inside during that time I would imagine that scenario is unlikely!

[Incidentally cash or bank transfer makes no difference, of someone does receive income that needs to be declared they still have to declare it either way.  If they don't because it's cash, that would be fraud.  Again not applicable to your daughter in this situation, but the person who advised you to pay in cash thinking it made any difference was doubly wrong.]

Alice_Holt

My view is that voluntary payments are not included as income for UC:

https://www.entitledto.co.uk/help/benefits-charity#:~:text=Any income you receive from,by this kind of income.

However, I would suggest making the payments less regular, and also purchasing necessary goods / services for her.

Be careful that the payments do not accrue as savings for her and exceed the capital limits. 

Is she in receipt of PIP or Council Tax support?

calcotti

What is counted as income for UC is listed in the legislation. Voluntary payments or gifts are not listed and therefore are not counted.

MaryMoneypenny

Thanks for your comments. This is very helpful.  She hasn't claimed council tax support as sh has savings above £6,000. In our area  that means she is ineligible.  We didn't apply for PIP when she was first ill and now I think we may have left it too late for that as she has got to the stage in her recovery when she is managing better. I wouldn't want her to go through the PIP assessment after the WCA when I don't think they would award it to her.
can I ask one final question.  We also pay into a personal pension for her and have done for about 3 years as her poor mental health has meant that she has struggled to work consistently.  Provided pensions are not in payment, they don't count either, do they? She is only 41, so cannot access any of the benefits from the pension.

calcotti

MaryMoneypenny said:

We also pay into a personal pension for her and have done for about 3 years as her poor mental health has meant that she has struggled to work consistently.  Provided pensions are not in payment, they don't count either, do they? She is only 41, so cannot access any of the benefits from the pension.

In money in a pension pot is ignored for UC. It will only matter when he reaches pension age (at which age UC will stop anyway unless that at time she has a partner who is younger than her in which case UC would continue if applicable).

Alice_Holt

MaryMoneypenny said:

 sh has savings above £6,000. In our area  that means she is ineligible.  

We didn't apply for PIP when she was first ill and now I think we may have left it too late..... 

      Those savings need to be declared to UC, and UC will calculate a tariff income which reduces her UC amount.

     I think it still worth looking at PIP, get advice from her local advice charity.

HillStreetBlues

Personally I can't see the point of gifting money to your daughter if she has over £6k
As that gets eaten up by less UC and no CTS.

I would be saying once  savings have gone below £6k you will happily gift money then.
This would allow her to keep all of the UC and claim CTS  and know if she does need any money it will be there for her.

born_again

I would agree with some of the others. Rather than give her the money each month. Offer to pay for shopping or other expenses (insurance etc)
Making her aware that you are there to help with big expenses. Putting the money on one side in a savings account of your own.

That way there is no risk to her going over savings limits. or anyone thinking that she is being paid cash in hand for any work etc.