Savings and benefits

[summerinthesun]

I am not out to scam the system, but I am newly single with no savings and about to start a new job. I am just starting to wade through the horrors of applying for benefits, and I know people say if you have savings it means you don't get benefits.

I really want to start saving for the future, an inspirational friend of mine has had a series of low-paying dead-end jobs, and has managed to save over £10,000 despite that. Whereas I have always spent as much or more of what I earned.

I'm wondering if I should set up a bank account for my DD and start putting savings into there. What are the pitfalls of that? Basically it is so when we need the money - ideally to buy a house! we could use it. Is the danger that the money wouldn't really be mine? Or that my ex could nick it or claim it somehow?

Any help or advice gratefully received!

Best to get some proper financial advice here I think. Savings in a child's account may not be the best thing for you due to interest rates etc. Would citizens advice help? As for how it affects benefits, it should be made fairly clear on DWP/ JobCentre information.

I don't apply for benefits so I can't be more helpful!

I think you can have savings in your own name (ie, no need to put it into your daughters name) of up to £16k so you could definitely start saving. If you look on the turn to us website you might be able to find out more.

Income Support deduct £1 per week per £250 of savings over £6000. so you can have up to £6000 of savings without Income Support being affected. If you are receiving Income Support, you should receive full HB and full CT.

WTC and CTC assess it slightly differently, but again, the threshold is £6000 (I think).

It's worth going through the benefits calculator on the Entitled To website for more in depth details.

When I had to claim benefit 7 years ago, you couldn't have savings of more than £3000.00

I think the figure is higher now but not much. I won money from a court case which was literally in my bank for only two weeks as I used nearly the whole amount to pay off my various debts. But obviously, cheques had to clear...I couldn't send the cheques until the money was there in my bank. They came down on me like a ton of bricks, called me in for benefit fraud and recorded our interview. They then wanted receipts for every penny I had spent of the remainder of that money..which was within the "allowed" saving amount anyway. For the fortnight that money was in my account they made me pay back the benefit i'd received. I would be very careful.

I can see the logic in it, someone with that amount of money shouldn't claim...but if we aren't allowed to save how can we ever expect to better our situation? £3000.00 savings would have paid for me to have driving lessons, tests, buy a car, insure it and pay childcare upfront giving me a much better chance of employment....

You can have savings of up to £16 though the amount of benefit IS & HB will be affected by savings over £6k and they will ask to see statements evidencing savings over £3k. Also you will need to declare savings over £3k held in your children's names - not sure if/when this affects your payment.