To ask how I can successfully ringfence this money? (Please don’t post for moral judgement)

[Jaalp]

I am a single parent to a 3 year old who will start school in the next two years. I have saved up a significant amount of money for schools fees. As a single parent I am constantly worried about job loss or anything else that could affect things. I am aware that if for some reason I was made redundant, for example, if I have more than a certain amount in savings then I would be expected to use this before claiming universal credit etc.

I have no intention of claiming universal credit but life happens and I have to be conscious of the potential things that could happen.

My question is, is there any way to put this money in an account for my child that would be protected as theirs and not counted in an assessment for universal credit etc should that ever happen?

Please don’t make this is a private school bashing thread or about playing the system etc. I’ve worked hard all my life and intend to continue to do so. Thanks.

@BarbaraHoward you have mis read my OP. I never said I wanted to cheat the system. I wanted to know if there was a legal way around this, which it turns out there potentially is, in the form of a trust fund. Your comprehension skills need some work.

She can afford it. She’s making contingency plans for a worst case scenario. She wants to know if there’s a way to ring fence this money for her child’s education - and there is.

@wombat15 oh I didn’t know this. So it’s only assessed on savings if you claim beyond six months? I’d not be happy being out of work for a month, let alone six, so this is the hypothetical cushion I was hoping for.

Speak to a solicitor that specializes in setting up and administering trust funds. What you want can be done, and legally.

If she could hide this money, she'd get (assuming maximum value home and are Council Tax band E in outer London, so a high value area) just under two grand a month plus a loan towards the mortgage of a smidge over a thousand.

Average payment for a primary aged pupil is more or less seven and a half grand a year depending upon location and whether, as would happen here, the kid is eligible for pupil premium of about fifteen hundred quid.

Making this oh, so very noble sacrifice of hiding money would 'save the taxpayer' the grand sum of MINUS twenty eight thousand pounds a year, so if she is able to wriggle out of the requirement to seek and take work/persuades the person assessing her jobseekers' allowance that she really is trying to find something for the first three years of his education somehow, she would be responsible for the best part of ninety thousand pounds of government expenditure.

That's clearly not doing any favours for society.

But she can afford private fee's. Its luck of the draw. Thread should not make you angry.

If you had bought a house with your 17k deposit last year you would be entitled to UC. Your whole situation would be different.

If you had previously pissed that 17k up the wall or gone on luxury cruises you would be entitled to UC. If you earnings are more than 17k this financial year and you dump that money in a pension you would be entitled to UC and you will get rent paid for you.

AND most importantly any of the above choices would be yours to make.

@InterIgnis thank you

Just interested Op why you think private Ed is best. I'm in W Sussex and our local academy has better GSCE results.

@Dawninglory i really didn’t want the thread to be a debate on the value of private school - but in essence I want my child to have the best chance of a happy time at school. Statistically the chances of a happier and calmer environment are in a private school. Not always, but statistically. Couldn’t give a hoot about the results… I know my child would do well academically anywhere as I would support it everyday.

Yes, it is based on your national insurance contributions for the first six months. Therefore, as long as you are not out of work for longer your savings will not be taken into account.

OP - as fellow single mother who has been paying private school fees since my daughter was in Reception (now in Year 10) I can honestly tell you IT'S NOT WORTH IT. It's honestly one of my biggest regrets in life and a complete waste of money. There are much better investments with actual return.

If you are having to think in this way you cannot really afford private education right now. It’s a lot more than the basic fees involved.

I would advise to spend the money on a property with a spare room, within the catchment of decent schools, in good order, with high spec insulation, solar panels etc so it is comfortable and cheaper to run. Because if you do need to claim it, universal credit is not very much to live on and high bills will be unaffordable.

If your income suddenly dropped, this option also allows you to get a lodger / Airbnb a room.

If you keep earning, you will probably be able to afford private secondary school, or finance their university education.

As I've said I don't doubt that there's a legal way - look who writes the laws that allow it.

My point (and others' points) are around the morality of what you're doing.

@wombat15 thank you this is very reassuring

It makes me angry because while there may be legal ways to go about it, claiming UC while sending your child to a private school is morally wrong. I would feel equally angry in the other scenarios you mention.

Buying a house with a 17k deposit as a single person. Is this even possible in 2024

@BarbaraHoward i really think there are much bigger moral issues than a parent trying to ensure her child can have the best chances in life. Perhaps focus on fixing the very long list of issues prior to that before berating a parent for this.

Does your child have to go to a private school? Why don't you just put the money into a trust for them to do with what they want when they reach 18? That would be a lot wiser than throwing a load of money at a pretentious private school.

This. Or buy them a house and rent it out. I say this as a private school parent (who can't wait for my daughter to finish her GCSEs and go to a state school).

If you lose your job you put your kid in state school simple

If you do put in trust, bear in mind withdrawals are limited, so should your circumstances change you cannot freely access it.

We're all trying to give our kids the best start in life. You're no different there, you just have more resources than most.

We have savings that are earmarked for our DC's future. Not as much as you, but they're there for uni/deposit/wedding/whatever is appropriate when the time comes.

If we fall on hard times though, those savings will feed and house us, as they should.

She can have a pretty good chance at state like many other kids. Just need to look around and see what ones are out there.

@BarbaraHoward again, I am not sure why your moral compass is so focussed on a parent trying to do the best for their child? There really are honestly so many bigger moral issues.

@Jaalp Surely. you'd just another job? thats what i ve always done, messing about claiming a few weeks of JSA etc is a pia... oh yes and i was a single parent too.

Its not like you re a Port Talbot Steel worker is it?

Have some fucking pride!!

There are rules on gifting money.

i think the first 2 scenarios are wrong. We don't persecute those people that are over indulgent and don't save.

You can buy a house/flat with 17k deposit. Depends on area and yearly salary.