Savings for UC, does this count?

[beautifulsun]

Are they counted if in child's name?

My daughter (3) has a savings account. It currently holds about £4000

My monthly payment of UC is 1350. DLA about £650 (part is automatically paying for motability car). Carer's about £300. Salary of £1910 a month

I don't really have the cash to make premium bonds worthwhile

What would be the best way to put some savings away for her without the impact on UC savings limit?

Obviously I'm thinking very long term. She isn't reaching the 16k limit anytime soon (they only charge for it per £ or so once you're over £5099 in savings)

To be totally transparent, no, it isn't 'secretly' for me. Her current savings Account is an ISA and I cannot touch it. She gets money from family and friends for birthday etc on top of small contributions I make

How many are going to be able to claim if they don't need it?

Guess the problem is due to some who do this and empty the savings account so just use it as their own pot, which happens. X

I think what is being said is the benefits system was initially set up to those in need for basic living, not to use to put into savings. Many people working MW don't have money left over to do this so this is maybe why there is confusion as to how someone on UC has the extra finances? X

Sorry about your loss, I know your pain. In their eyes if you have this money you basically have money to live on. Benefits are to help when you don't have your own funds, so after using this there shouldn't be a problem. So any money within a family living together is deemed to be exactly that, means to survive, no matter if it comes from pure grief. Xx

Oh I'm so sorry, sending love and hugs. That's the thing with posts, no one realises until we know more. Life throws some real hard balls, I get you, have got a lead weight loaded one myself. Take care and best of luck to a brilliant Mum. Xx

@beautifulsun get an appointment with your bank and see if there's a way to put it in a junior isa or trust fund that you cannot access. You are the UC claimant, not your children. If it's their inheritance the its their money. If it's not accessible by you and belongs to them, it's not your savings.

@ImthatBoleyngirl you are missing the point entirely. UC is a means tested benefit. So I am entitled to around £1800 with all my elements rent, childcare, personal and 1 child element all adds up to that without deductions. I then go to work and earn £1425, Uc then take 55p of every pound after £379. Which I think works out that they take £575 from my £1800 cause I work.

which leaves me with £1425+£1225=£2650.
i then pay £650 rent
£100 Council tax (although in debt at present so it’ll be £200 till March).
Childcare was £765 until I got 15 free hours in January
food shopping easily £80 per weeek.
car insurance and tax £150 a month
petrol…£200 a month easy.
gas electric £130 per month.
phone bill £60
essentials £50
clothing ( I tend to just buy all I need one month and not do so again until I’d need so I’d say £30 a month on odd stuff.
nappies and wipes are easy £15 a month.

i can’t be bothered to work out how much I’m left with after rent childcare and council tax car insurance etc goes out alone but can you see my point.

I barely make it by as it is and it’s only me and one two year old.

if the system didn’t think you needed it because of your earnings you wouldn’t get it . the more you work and earn the more they take.

I doubt many have much money left over but if they do because they are savvy or prioritise saving over other things I don't see an issue. It is good if you have enough money to cover an emergency new freezer or car repair.

I think 6k is also too low. A broken boiler/ broken or stolen car or even the need to move house could create a massive dent in 6k. Especially as that 6k will include everything you gave in their on pay day. So if wages, benefit including nursery is 3k - you only can have a 3k buffer!

The problem then lies when someone has two problems at once. The boiler is on its last legs and the shower breaks. Or someone crashes into your car damaging your car seats and you need to hire a car to get to work. Or your relative dies and you have to shoulder funeral costs. Or you are really unwell and off for a couple of months and your work doesn’t give sick pay. Or the nursery closes and you have just paid in advance and now you need to pay again. Yes they are only occasional issues but it’s best to have savings for emergencies.

These situations can cause people to incur debt. If a person on benefits is working but choosing to save rather than put their heating on or they walk rather than using a car etc or they have no pets or never buy themselves new clothes - I think they should be able to have a 10/12k cushion without it affecting their benefits.

I could live off benefits until stuff starts breaking. My fence was storm damaged 3k to replace it. If a UC claimant can’t have more than 6k at anyone time (including wages and benefit etc) then that may leave them 1k - not much to cover your next emergency. Instead people resort to taking debt (with interest) for the next emergency. That could make their situation worse.

Never fails to amaze me that it always seems to be the same people who take the line of ' you shouldn't claim if you don't have to and what you get should be the minimum to keep you off the bones of arse ' who were happily holding their hand out for child benefit because the were entitled to it, even though it made no difference to the household budget, just paid for 'extra treats' for the kids, and were bemoaning that it was being taken away when they changed it to being income related.

Horses for courses and all that

@FairyMaclary a lot of people seem to think that if you're on UC you shouldn't be allowed a car or your own home so will not have these costs. It's ridiculous of course but there is a lot of nastiness around now.

Contribution based esa and pip are not means tested so there is no savings limit. Your friend could have thousands in the bank and it wouldn't make any difference. I the esa is based on the national insurance contributions made

In years gone by, you would be able to have up to £6k in savings without they affecting your Tax Credits.

People may say this is unfair but, if you are allowed to have savings when receiving UC is because they won’t pay for uncovered emergencies like paying to fix the car that enables you to work at a place you cannot reach by bus, pay for a hotel if your flat floods, or repair the boiler at short notice, and things like that.

People who may think this is unfair is missing the point, as without those savings you could end up far more vulnerable and therefore cost the tax payer more.

Besides…. Most people receiving UC credits are working but are badly paid considering the current cost of living.

So those complaining about taxpayers money being spent on benefits are barking at the wrong tree, they should be complaint about the crazy costs of living, the stupid mortgage interests, the low salaries and stop voting for people like Boris, Liz Truss and other selfish entitled idiots who deflect the guilt by blaming the most vulnerable which are often very hardworking despite experiencing financial hardship due to no fault of their own.

I don’t usually comment on threads but this one has made me so angry. I find it abhorrent how many people are moaning & bashing people claiming benefits (whether working or not) for being able to save a little. The amount of blinkered, small mindedness is shocking.
No matter what your circumstances everyone needs a rainy day fund, which is exactly the reason why you are allowed to save up-to £6000 with no effect on your claim. The DWP recognises that everyone needs to have accessible funds for when things go wrong. People who are able to save are probably very savvy with their money and possibly have been able to not have too many debts. There should be zero judgement when NOBODY knows the ins and outs of a persons financial responsibilities. Some people who are able to save may be able to do so because they live a very simple life, they may buy second hand clothing, or grow their own fruit & veggies, or don’t own a tv or a mobile phone or never go out and thus are able to save for a rainy day. The op’s original post stated she’s able to save £80 a month. Think about that - it’s literally £18.46 a week, the equivalent to any of two of the following ; A meal deal at a fast-food restaurant or cafe, A paperback book or a magazine, Some basic stationery supplies like pens, notebooks, or folders, A small indoor plant or a bouquet of flowers, A movie ticket at some cinemas during off-peak times, A few items at a discount store or pound shop, A couple of drinks at a coffee shop, A small gift or trinket, A set of basic toiletries like shampoo, soap, or toothpaste, A small clothing item on sale or from a budget-friendly store.
The op may well go without buying two small things like these on my list in order to “stash” (as you moaners call it) away the £18.46 a week. If she bought those things instead you’d be moaning about that too !!!!

You should be fine if you definitely can’t touch it. If your name is linked, it’s possible that you will be asked about it at some point and then a decision maker will decide if it’s classed as yours for the purposes of UC. Like you say if this amount added to anything in your names reaches £6k plus then some UC would be deducted.

Are you claiming Carer’s Allowance or Carer’s Element on Uc?

So you put in £80 a month. A good amount many people couldn't do. Yet you say 90% is from relatives.
Christmas and birthdays are twice a year.

So what? I put more than that in savings and work and receive UC. Why shouldn't she or I?

@Nonewclothes2024 Just because you can't save doesn't mean no one else.

I can save. I work FT. Thanks.
What I'm saying is many on UC can't. My daughter has zero left a month on UC.