Child’s savings on UC?

[Marvelfan300]

Can anyone advise my friend has a savers for her little girl (one where she can access if needed.) she recently claimed UC but they said they didn’t want to see statements etc for that account she was speaking to someone today who said she had to declare her daughters savings of £35,000 her daughter is (13) but online says she doesn’t? And the people who were at the job centre said she didn’t need to supply the statement but again she’s not sure and im not on it to advise any advice appreciated

If the account is owned by her child and in her child’s name, like a junior ISA, then it’s not taken into account for UC

If the money is held in your friend’s name, then it is taken into account for UC, even if she regards the savings as being for her child.

here

In Feb I had notification of a review of my claim. They asked for bank statements covering everything since I applied for UC. I provided copies of all my statements, but just the account numbers for my children's Premium Bonds and savings accounts. I didn't even tell them the amount in those accounts.

I just received notification last week that everything is in order and that the funds held in my children's accounts would not been taken into consideration. They are the named account holders, and the accounts belong to them rather than to me even though I can access them to add or withdraw funds

When Sarah spoke to them about her child’s savings it stated on the statement
‘Sarah ….. RE daughters name.’
as it’s a child’s savers and she said she wasn’t interested in the account because it was the child’s but because she’s realised now there is a threshold I think over £6k she’s now worried about the money!

UC legislation is clear. If the child is the beneficial owner of the money then it’s not classed as the claimants. The type of account and access etc is irrelevant.

where has the money come from.

If the account is held by “Sarah X re child’s name” then that sounds like the account is in Sarah’s name, not her child’s name?

So even if mum (Sarah.) is on the statment but the account states child’s account and child’s name that’s ok? Is there a limit for the child’s account? The money is from birthdays, Christmas, her dad pays in CSA and also Sarah’s mum passed and left small amount of money for driving lessons in future

This is what she is confused about, they originally didn’t want to see the statment and said all ok but until she’s been speaking with another person they stated that she can’t have over 6k in there for her daughter and because it’s not in I think a isa?

So Sarah can access her daughter’s account which has £35,000 in it?

Again in the UC legislation it states that UC will accept that a child under 18 cannot be the legal owner so it’s ok to have the account in mums name. Birthday Christmas money fine the child will be seen as the beneficial owner.
CSA payments possibly mum
inheritance it depends if the will states the money was to be left to the child

If she can access the account, as in it’s just a normal child’s savings account, then it’s going to have to be declared. Or else we’d all be funnelling money off into our kids savings so we wouldn’t go over the savings threshold.

@Marvelfan300 You can check the legislation here
https://assets.publishing.service.gov.uk/media/69d528703efd329a5269df31/adm-ch-h1.pdf

H1077-H1080

Incorrect. I’ve posted the UC legislation. Says nothing about access.

Yea due to the child not yet being at age to have the money

Your still being quite vague. Your friend should know of it is in the child's name or not. If it is in the childs name then it isn't taken into consideration for UC purposes.

This is all quite fishy. A parent has less than £6k in savings but their child has £35k?

Sarah should declare it to UC and let them make the decision.

I’ve stated as above the account states mums name same line states RE then daughters name followed by the same address lower down states daughters name again and words statment summary

She has put it in the notebook part of her account on Friday and said she’s going to call tomorrow as her daughters account isn’t a ISA so she doesn’t want to hide anything - in reference Sarah inherited part of her mothers property in which her dad and brother still cohabit in (she gets none of that until her father sadly passes, money was left to all 6 grandchildren.)

Why is the CSA money going into a child’s savings account?

Best to just provide the details for it like I did if she's not sure. My thoughts where when they saw my transactions to the kids accounts they'd query it and I'd need to provide it at some stage. I just wanted to get it all over and done with in one go

If you have access to an account in the child's name and can make withdrawals then it is counted as your savings. If its an ISA in the childs name that you manage but can only make deposits or move to another ISA until child takes control of it at 18 then it's not classed as your savings.

Why is it fishy ? My kids have £15k each in there's and I only have £5k

There's is predominantly from an inheritance. Before anyone jumps on me, my UC claim is for help with childcare costs because I work FT

I think she’ll need to let UC finish their enquiries and let the DM make the determination. But I doubt they’ll find the child the beneficial owner of CSA money and inheritance. And I can’t see how the child has amassed 35k just through birthday and Xmas money.

Incorrect