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.

Strong, but I agree.

Also agree with this

You can’t divvy up your money and say "Well, I’m keeping this chunk for optional school fees, which doesn’t leave me enough for ordinary living costs, so I want benefits funded by the taxpayer to cover those."

I hope there is no legal way to do this. Anyone who tries to pull a stunt like this or tries to help others to do so is behaving in a contemptible way.

My kids have savings accounts in their own names since birth and I am able to withdraw any amount from it at any time as long as the money is used for the child. I don't see why school fees wouldn't be able to be paid from that money.

I just want to get this right.

1. You've saved up enough money for private school.
2. You are worried if you lose your job, your savings will prevent you from getting UC.
3. You want to do something with the assets so they will be available for school fees, but not count towards UC.

The answer is no, you can't do that. It will be deprivation of assets, which is a criminal offence.

So firstly you know you can get contributions related job seekers allowance for the first six months of unemployment right? Savings are disregarded for that time.

Even on income based UC the first £6k savings are disregarded.

Secondly if you own your home with a mortgage you would only get help for housing costs in the form of a loan for the interest.

So are we to believe that you earn enough currently to have saved substantial amounts for the future private education of your 3 year old but are seriously anticpating a situation where you will be unemployed for over six months and have no emergency savings, income protection or critical illness cover?

You are either a troll or a financial simpleton.

@Concentrationneeded its not about status. I am not sure there is any point explaining as I think we are on very different pages given you’ve suggested it’s about status 🤦‍♀️

And the other really important thing is to have decent income protection insurance, so that if you leave your job or lose it, then you will have income.

Most people on professional jobs are not thinking about ever claiming UC, not least because it won't cover the mortgage.

So surely you have a plan to cover the mortgage if you lose your job?

@Ginmonkeyagain i didn’t know that about jobseekers.

I hope you feel lucky to clearly never have been in a situation where all financial responsibility for your child is on your shoulders. Of course it is a concern to me.

Look, I'm 100% opposed to private education, but some of the criticism is a bit daft. If OP sets up a trust fund for her kid, the money becomes the kids. She cannot ever access it no matter how desperate. Therefore it's no longer her money - it's no different from her giving it to charity or spending it on buying 10 000 shoes. Should she need the money in the future, it's "gone", and therefore she may be eligible for benefits she would not otherwise have been. She's given the money away to her child. It doesn't matter whether it's been "spent" by/on behalf of the child, or what it's been spent on.
That said, I don't really see how you can have so much saved up, that potentially going on UC would enable you to continue with private schooling. It seems to me the numbers won't ever work. And if you've a decentish job now, then there's no reason why if you lose it you can't get another one. The big risk is that you get sick, can't work (ever), and the only way around that is insurance to cover school fees - but by God it's expensive.
FWIW I went to a comp, my children will be doing so, I think private schools should be nuked.......

Well they might be of considerable benefit to you if you lost your job and wanted to keep a roof over your head and eat unless you could find a couple of thousand gullible tax payers willing to support you

@Dishwashersaurous im not thinking about it… as I have repeatedly said, I would hate to be on UC. I am anxious about things in general as a single parent

And there was me thinking that a big part of the reason why this country is in the state it’s in is because of 14 years of croneyism, tax loopholes, energy companies prioritising their shareholders above all else, billionaires hiding money in off shore accounts… in other words a shortfall of taxes going into publicly-funded institutions that the country needs to invest in due to the selfish nature of the wealthy protecting their own interests.

Either pay the school fees upfront or keep it out of the bank and in cash.

You could try premium bonds in your childs name.

My Dad is holding some cash for me, about £25k but that’s to stop me spending it (my request!). I can have it any time but it’s my “sky has fallen in” fund. And I know he won’t spend it (my Dad is quite well off and completely trustworthy). If he dies I get it anyway.

Do people really begrudge a working single mother putting her savings aside in a trust for her child to go to school?

There are so many tax loops used by people up and down the country that I really can’t get worked up about this. And I went to a pretty bad comp.

I don't think anyone who is able to pay for private school should be able to claim benefits. That doesn't seem right.

Well you are thinking about it enough to post on Mumsnet.

I'd suggest you talk to a financial advisor about the best sort of income protection insurance for you

Your attitude is so out of order.

We're all working too, buT you expect us to cover your benefits if the worst happens despite the fact you wouldn't need the money.

It's pre-planned benefit fraud.

https://www.uceplus.co.uk/deprivation

I really hope there is not a way to do this otherwise it makes a fucking mockery of the UC system if money can be hidden away to pay for unnecessary school fees.

Interesting you should say this. There was a post the other day from someone who had put money into premium bonds in the DC name and wanted to take them out to buy a house. Loads of people saying it was fine 🤔

The country is in the state that it is partly because of people like you who feel entitled to other people's hard earned money to pay for your necessities while you spend your own money to buy your child the privilege and advantage that private education brings

Yes you r playing the system you r saying you want your savings to go for school fees but just you lose job and you have savings you don't want to.use savings and claim universal credit. If you needed this unfortunately you can't as 16000 is max savings you can have I believe ir it was . Yes you could put it in a child trust fund I guess but you couldn't access that money as that's your child's money when older

Quite. You could pay the fees upfront. That's probably legal. Or put the money in trust for your child till they are 18. That's probably legal. Or are you asking for ways to hide the money?

@Tellysavelas no we are saying she needs to prioritse other things first - like an emergency fund and income protection. Her financial priorities are all wrong. UC is pretty low compared to a professional income - no point being able to privately educate your child in future of you can't pay the mortgage now.

Do private schools take cash?

One of my relatives has cash in the attic (literally). Every few years he has the stress of taking it in instalments to the Bank of England to change it into new notes or begging others to do it for him as you can’t do it all at once without raising suspicion.

He’s constantly afraid of fires and burglaries, it’s no way to live.