What counts as savings?

[Emptywishingwell]

I know all savings must be declared even if discounted and understand about the thresholds (I think) but for tax credits and housing benefit purposes can anyone help on the following?

1. Both my children's savings are in child trust funds and cannot be accessed until 18, do they still count towards the thresholds or are they discounted? Is the threshold £3000 each or combined?

2. For CTC/WTC, if my savings are in an ISA would they be discounted due to being tax free or not? (I'm new to it all and have no idea how these things work) Also for HB am I right in thinking an ISA would still count?

3. With the thresholds am I right in thinking that the children's savings are included in total? So for example if the children have £5000 between them I could only hold up to £11000 for HB threshold that is?

4. Are workplace pensions, private pension, pre-paid funeral plans and life insurance included for either?

At the moment there is no saving threshold for CTC. What you have to declare is any interest, which with current interest rates isnt always that good.

HB does have a saving threshold.

I have never been asked to declare any savings on my CTC claims and when I do online calculations I always tick the box to say we have savings and I always have a figure produced near enough to what I am awarded.

This will change under UC though and savings will be thresholded.

I am not sure of the other answers sorry.

Thanks :)

I have just looked UC up as I had not realised what it was.

It will be a long time before I'm anywhere near the threshold and it will most likely change by then I just wanted to make sure I knew the rules first. My main concerns are making sure the children have some savings for when they turn 18, to make sure I have a good pension and to have some sort of money for if I lose my job or anything happens that requires me to need something to fall back on short term.

Childrens savings do not count for HB or TC. Under universal credit children can have up to £3k accessible savings per child however you need to tell the dwp if it goes above £2.5 k ( just so they can check it doesn't go over £3k. Savings that can't be touched until aged 18 children can have unlimited savings.

Pensions are pre paid funeral plans are not classed as savings. Life insurance is only classed as savings if it has a surrender value and again only relevant for HB or UC not TC.

Pensions and NOT pensions are.

No childrens savings are not included in total it's £6k for you and £3k per child.

Sorry for the delayed reply.

Thank you so much that's been really helpful.

You say childrens savings are not counted for housing benefit but limit is 3k i don't understand, also what happens if its over 3k?

There are savings thresholds for housing benefit. See the capital section on CAB website link below. In general I think they will only look at your savings. The difference would be if you recently put money into someone else's account. The Council might decide that you deliberately gave away money to get housing benefit.
Couldn't find anything on citizens advice about the deliberate deprivation of capital but Merton Council has quite a good explanation

www.citizensadvice.org.uk/benefits/help-if-on-a-low-income/help-with-your-rent-housing-benefit/#h-who-can-get-housing-benefit

www.merton.gov.uk/advice-benefits/benefits/hb-ctb/benefitsclaim/hbctbsavings.htm

still doesn't mention about children savings, i'm well aware of 6k but i'm just interested in why my son can only have 3k in the account that can make withdrawals from. I havnt put any money into his account for well over a year.