Am I being unreasoanble to find this loophole in the benefit system unbelievable?

[AllDirections]

I've just been told that if a person on Jobseekers looks after a friend's child (for no money, just expenses) a couple of days a week, then if they could have that child's child benefit transferred into their name this means that they can come off Jobseekers and claim income support instead, therefore taking away any requirement to work.

I can't believe that this is that case, otherwise lots of people would be doing it, wouldn't they? Apparently the job centre gave the person looking after the child this information.

I wish this actually was a straightforward financial loophole. I'd be raking it in during the summer holidays. My DSs have a few friends whose parents are above the earnings threshold for CB so can't claim it. These kids are here a huge amount in the holidays, for several hours a day most days. Some sleep over here a couple of nights a week as well. It's a reciprocal thing, my DSs sleep over at theirs some nights too and if they aren't here, they are at one of the other houses but they use my house as a base so are here more often than any one other house.

If this were a real loophole, I could claim these kids lived here and put in a claim for CB for them then cancel it after term starts. It would be a lovely little lump sum when the claims went through, just in time for all those start of term expenses. It wouldn't be taking CB away from the actual parents,because they can't get it anyway.

Only I can't,because this isn't a real thing. Your friend has been misinformed by someone with an ulterior motive and it could cost her dearly.

it is possible for two different people to claim CB and Tax Credits for the same child

beck, this is true, but not in the circumstances outlined here. At one stage I was claiming CB while my exH claimed tax credits. I was absolutely upfront with HMRC about this and stated exactly how much time DD was spending with her father. But we both did have parental responsibility and it doesn't mean I can set up this kind of arrangement with a friend.

There is no loop hole, you have to be financially liable for the parent of the child so they can have no income or be under 18 themselves