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.

Because the welfare state is not a savings account, it's a safety net

You're allowed to disagree, that's absolutely fine.

And I am one of the lower paid workers! That's why I feel this way tbh.

If your concern is what ifs and isnt a need now, you are better looking at protections now. Insurance for income, long term illness cover etc. this would mean you would be protected without the angst about losing this money.

I do agree with people saying you cant ring fence money, you may see it as more worthy than holidays and fancy cars but all these things are luxuries that, if you need funds, are what you go without. Private school is the same unfortunately.

However if you put income protection and illness cover in place, you can then protect yourself against these things and will also give you long term reassurance.

This has to be a wind up. No one earning this amount of money would be asking this question and apparently not know the answer or expect the responses given.

You mean.... like everyone else who works their arse off for their children whilst hoping the worst doesn't happen?

YABU

It's just my job. Doesn't affect me as I have no trusts or wealth to worry about, but many do

What would have happened if you had, let's say, 5 years of private school fees saved up? What would have to happen where you'd need to claim UC for the next 5 years?

Okay, I could see a dip in your earnings for a few months while you get back on the job market, but unless you never go back to another job, surely you'd start saving back in that pot, so instead of having five years saved up, you have four and carry on adding to the pot.

But you're asking people how you can play the system if, in the future, you need to claim benefits. I'm genuinely, absolutely not a benefits basher but it's obviously not right to claim benefits when you have a massive lump sum saved. Even if there is a legal way to do what you're talking about, I wouldn't want to help you to find it.

I’m going to put £50,000 in an account for my kids. I’m claiming all the benefits but I’m ring fencing that 50,000 for luxury holiday only.

csn I ring fence they do when I claim if they can’t use it? The kids will be coming with me to Bali though.

Actually, she can with proper wealth planning and a good solicitor/accountant

Of course it benefits you!!

Sorry I didn’t say what I meant properly. I e in the U.K. you can be on universal credit for as long as you need yet in Sweden for example you may get more money as it’s more equivalent to what you earned as you say so but it lasts for a max of 300 days that what I meant about not lasting long

Even if you were on UC for an entire year that's under £5k with the risk of sanctions if you do any work at all. They wouldn't pay your mortgage for you so it's unlikely to be worth the hassle for you. If it came down to it you could just temp for a bit.

So hypothetically, you'd want tax payers to support you and your family whilst your savings remained untouched, to spend on a specific luxury of your choosing?

Er, no. There's no legal way to do that.

I agree! I was just trying to understand what she was asking.

So many people on here thinking that money from the state is just 'free'. Its money from your neighbours, from your friends and your colleagues. If you were unemployed would you nip next door and ask them to buy your shopping while you spend your money on your children's education?

The entitlement!

Great. I’m going to do it too then!!

im going to put that money for luxury holidays.

Put some of that hard earned money into legal advice OP. MN is not the place for this question if you are sensitive to the moralistic responses.

This, honestly the ridiculousness of thinking you wouldn’t be defrauding the state is incredible

Is education a luxury?

It would be fine to have a couple of teslas on the drive... now that's a luxury.

@GabriellaMontez private education is a luxury, yes most definitely.

You mention 200k, the not great private school not too far from me charges 8.5k per term, plus uniform and trips.

Also private school is not always the path to success. Your child will have its natural ability and maybe that can be encouraged and stretched so I see the advantages of small classes. But their peer group has a far bigger influence on them than anyone would like to admit. Those peer groups can be bad in state or private school.

Be careful over compensating because you’re a single parent.

Of course you are being judged and rightly so.

Could you take out income protection cover? So, say you get made redundant, if you've paid for a policy to the value of school fees + inflation, it should pay out enough to pay the school fees.

I think the problem is that you're looking at protecting privilege - a privilege that you want to retain even if you can't afford it.

So you want your child to be kept away from children whose parents can't afford a privileged education and yet are happy to use those parent's to pay for your living costs whilst your child doesn't have to experience their 'lesser' company.

You're asking to keep luxuries whilst other people pay for your necessities.

@GabriellaMontez so say I'm saving up for a house deposit ( we rent ) and have say £45k - is housing a luxury?? There's no difference. It's money the OP has -- what she wants to spend it on is irrelevant to the universal credit folks