Disregarded capital

astronautoreo

Hello

How long is disregarded capital disregarded for?

I have £2k disregarded in my capital for my Universal Credit calculation, which comes from a backdated benefit payment for DLA on behalf of my children. I receive this for my children so it's not technically my money, I need to spend it on them. However I'm unsure if the £2k will be disregarded indefinitely. 

HillStreetBlues

astronautoreo said:

Hello

How long is disregarded capital disregarded for?

I have £2k disregarded in my capital for my Universal Credit calculation, which comes from a backdated benefit payment for DLA on behalf of my children. I receive this for my children so it's not technically my money, I need to spend it on them. However I'm unsure if the £2k will be disregarded indefinitely. 

DLA is the child's money and should be treated as such, but one issue could be is showing that capital has been kept. Is it in a separate account?

astronautoreo

Hi

The funds are not separated, they are in one bank account as it's easier for me to pay for things that way. But your post made me think about it more and I've started a spreadsheet to track all payments. I'm going through my past bank statements to make sure it's accurate. This way I could prove what capital is DLA if it's ever questioned. 

astronautoreo

Also just to clarify, in case it's helpful for anyone else reading this, children's DLA is on behalf of the children but it's not theirs as such. It is to be used for their benefit, to help pay for extra costs associated with having a disabled child.

From gov.uk :

"Disability Living Allowance (DLA) for children may help with the extra costs of looking after a child who is under 16, and

has difficulties walking or needs much more looking after than a child of the same age who does not have a disability" 

https://www.gov.uk/disability-living-allowance-children 

So as a few examples, it can be used for clubs or activities, or special foods because they only like a particular expensive brand, contributing to electricity bills (for example my daughter has to sleep with the light on the whole night). I also use it to help pay for a cleaner once a month, because I can't manage all the cleaning with two children with additional needs and we need a clean house to function. 

This is a digression from my OP but just thought it was worth saying 😊

NedS

astronautoreo said:

Hi

The funds are not separated, they are in one bank account as it's easier for me to pay for things that way. But your post made me think about it more and I've started a spreadsheet to track all payments. I'm going through my past bank statements to make sure it's accurate. This way I could prove what capital is DLA if it's ever questioned. 

I would have the child DLA paid into a separate bank account, and then move any amounts you need to spend each month into your main bank account as required. This will make things so much easier when trying to convince UC that it's child DLA and falls to be disregarded, and has to be easier for you than trying to track everything on a spreadsheet.

HillStreetBlues

I agree would be better in a separate account, although there is nothing legally wrong with having it all one account.
Some DWP aren't well trained at if at any point you have a UC review it would be clearer to have the different accounts and easier to show you're not the  beneficial owner of the capital  in the account which the child's DLA is paid into.