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

My friend works for UC. If it’s in a Junior ISA, it’s not taken into consideration because it’s in the child’s name and the parent can’t access it. If it’s in the parent’s name, even if they say it’s for the child, it’s taken into account because the claimant can access it and it’s treated as if it’s their money.

UC don't know their own rules then......

The clincher is who has the beneficial interest in the cash which is more complex than account type and the name on it.

This isn’t true at all. If the child is the beneficial owner of the money in a saving account then it is not counted. It does not have to be in an ISA. It’s should still be declared so a decision can be made on it but if UC said it was not the child’s, I would ask for a mandatory reconsideration as they (as shown by the friend that works for UC) don’t know their own rules.

Exactly. Its also worth bearing in mind that they could also look at the account again in the future and if there's been any withdrawals, it will be very clear that the money is hidden parental savings rather than for DC driving lessons and university.

Child benefit should be spent on the child’s needs first, saving it is a luxury. Taxpayers shouldn’t be paying UC to people who save their child benefit.

If money is withdrawn for the child's use - school trips for example - that's fine.

It's constant intermingling that raises alarm bells.

If mum can access the child's money it cannot be an ISA. With an ISA the child draws their own money out at 18!.

Yes, this is what is odd. The money is supposed to be paid to Mum to bring child up.

As I understand it payments through CSA are determined by some sort of formula in which one factor is the paying parent's income.

If, based on that, the sum is sufficient for there to be cash left over after meeting the child's needs the is it unreasonable to 'put it away for a rainy day'.

Someone should be punished for getting by on a low income and still managing to save something?
If people on 60k receive CB why shouldn’t someone on less than half that receive it simply because they live below their means?

The majority of people eligible for CB should be able to save at least £100 a month or they’re just financially irresponsible.

Never mind inheriting a cool million with no IHT if you've played you cards right.