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Housing Benefit & Children's Savings
Comments
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I'm worried that techically, I do have access to the account as I am named on it, even though the account is in my son's name.
Can't phone CAB till Monday...
I have looked at a recent HB letter to try & work out what HB I should have been getting if the child's allowance in the applicable amount is not counted - it looks like I may (in the worst case scenario) have been overpaid by £40 a week since 2006. Which is about £8000!
But if his savings were (just) under £3000 I would not have been overpaid at all, so I really hope I have misunderstood how they would apply that.
Does anyone know what would happen if I go to HB & say I've just realised I should declare this account from 4 years ago??
Of course if I have been overpaid, I would want to repay - would there be other consequences if I volunteer the information & explain it was a genuine mistake?
(Goes without saying I will talk to CAB first, but it feels like a long time till Monday!)
To be honest I wouldnt worry about it - dsont let it ruin your weekend. I have dug out the books as this has piqued my interest so this is the official line:Your childs capital
Your childs capital is not added to yours and does not affect your benefit with the one exception that applies only to some people who have been getting IS or income based JSA since before April 2004*
There is more but it all relates to JSA and IS which you are not currently on, so to be honest I dont think you have done anything wrong nor did it ever have to be declared. But as a safety measure if your dad wants to invest some more then I would make him the signatory - in the event of him passing away it would automatically go to your son anyway.
HTH
Free/impartial debt advice: Consumer Credit Counselling Service (CCCS) | National Debtline | Find your local CAB0 -
if you can access the savings it is counted as your money.
Agree with this.
If the OP can goto the bank and withdraw the money legally, then legally its their money.
The issue about childrens savings being disregarded is when its held in trust.
Frankly if the family is struggling and on a low income (ie benefits) then that feels right.
Vader0 -
This is about entitlement though and legally I have quoted the common benefit rules. The OP can have the money she has held for her son as she can show it is a gift from the grandfather and it will not be counted as her capital.
Whether it feels right is irrelevant at this point.Free/impartial debt advice: Consumer Credit Counselling Service (CCCS) | National Debtline | Find your local CAB0 -
rules differ. is and jsa rules are different to hb and ctb.0
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Not for common benefit rules
Not unless the child poverty action group has it wrong in their publications too (which is what the LA use I am reliably informed)
However am willing to be proven wrong Free/impartial debt advice: Consumer Credit Counselling Service (CCCS) | National Debtline | Find your local CAB0 -
If being able to access the account means it counts as 'my' savings then does it fall under my savings limit of £6000? (since I only have about £400 of my 'own' savings).
In which case I don't need to worry about the dependents applicable amount being removed & having been overpaid because of that.
But I didn't 'save' the £3000, it was given to my son. If it now counts as 'my' money, does it mean I should have declared it as 'my' income in the year the account was opened? In which case I would have been overpaid that year after all...0 -
Just my opinion on this, but if the savings were £3000, account opened 4 years ago and child savings under £3000 are not taken into account, then surely the only money that could be counted for benefit purposes is the £400 interest over the 4 years?.Or is it because the account was not declared that more is owed? I could have this all wrong and please feel free to correct me if i am off base.
I hope that is the case! but I read it as that savings under £3000 do not count at all, but savings of £3000 or over mean that the benefit is reduced.
So if my son removed some money from his account (with me as signatory to it) and (for instance) gave it to me to help me pay my rent while my benfit was reduced becasue his savings were over £3000, then once the savings were under £3000 I would be entitled to claim HB again.
But if my son 'gives' me money then surely that counts as my income & I would have to declare it and my HB would be reduced again??
Its a fixed bond - I think some money can be taken out, but there is a penalty and needs to be a notice period - does that change anything?0 -
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I dont know a lot about benefits and savings to be honest. Some of the answers you have received on here seem good. If i were you and to put your mind at rest ring the benefits office, then you will know for sure. Hope you get this sorted out.I hope that is the case! but I read it as that savings under £3000 do not count at all, but savings of £3000 or over mean that the benefit is reduced.
So if my son removed some money from his account (with me as signatory to it) and (for instance) gave it to me to help me pay my rent while my benfit was reduced becasue his savings were over £3000, then once the savings were under £3000 I would be entitled to claim HB again.
But if my son 'gives' me money then surely that counts as my income & I would have to declare it and my HB would be reduced again??
Its a fixed bond - I think some money can be taken out, but there is a penalty and needs to be a notice period - does that change anything?0 -
If I stopped my Housing Benefit claim completely, then used the money from the savings to pay my rent for a few months and closed the account. Then made a completely fresh claim, I could do so with a clear conscience as there would be no account in existence to declare at that point? (Even if I should have declared the account earlier and have been overpaid, not claiming for five months would balance that out?).0
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