Savings

kloppsarmy

We have spent the last 14 years putting money aside for our children's education and now we need to make a UC claim. Its something that is annoying as we have around 20k set aside for them but we do not want the monies in a child isa etc as we want to control how and when they will get the funds. In the unlikely event, but an event could be where one of children are on the wrong path in life the last thing I would want is for them to get a lump sum and use it on a load of rubbish. So I think we only have one option is to buy something with the money so we can claim. our income is low so we do need that support. The saving are 100% for our childen we are not trying to play the system.

Anyone got any ideas whats best to do in this situation please 

NedS

Are the savings in your name or the children's names?

If the money is in your name rather than a child's account, then it will be treated as your savings and you will not be entitled to claim UC (unfortunately it is not relevant what you saved the money for).

If you were to suddenly move the money into a child's account in order to claim means-tested benefits, that would almost certainly be considered deprivation of capital and you would be treated as if you still had the money and again not eligible to claim. Same if you were to deliberately spend the money in order to claim UC as you propose.

kloppsarmy

yes in the children's named accounts linked to my current account. Ok thanks for the info I dont want to get into trouble I guess we will just have to use the children's savings to help with our monthly costs that tax credits used to. 

TELLIT01

Unfair as it may seem, generally any monies to which you have access will be taken into account when calculating entitlement to UC.  When I worked processing ESA claims I lost count of the number of times I had the conversation along the lines of "I've been careful all my life and now when I need help I can't get it.  If I'd p*d against the wall I would be getting everything paid for me".  Their statement is absolutely true but there's nothing DWP staff can do about it.

NedS

kloppsarmy said:

yes in the children's named accounts linked to my current account. Ok thanks for the info I dont want to get into trouble I guess we will just have to use the children's savings to help with our monthly costs that tax credits used to. 

If the accounts are in the children's name, then that should be fine as you are not the beneficial owner. It's where you have saved money for children in your own accounts that there would be an issue, or if you had suddenly moved money into your children's name in order to claim means-tested benefits.