Junior ISAs and Benefits

[Teddyo]

Hello!

I have a question regarding Junior ISAs and means-tested benefits such as Universal Credit and Housing Benefit...

Are Junior ISAs (children's individual savings account) considered capital which would affect entitlement?

I don't receive any benefits except for child benefit, but the above thought came to mind, as I have a few acquaintances who claim and have thousands in savings for their children. Surely this would be seen as a depravation of capital?

I recently opened an account for my son. The account is held under my name and then him, until he is 16, when he can hold the account in his sole name.

Look forward to hearing the responses.

Junior ISAs are in the childs name and you cant withdraw the cash

@dementedpixie You can with certain banks, such as Lloyds. Surely it still counts and must be declared?

As far as I'm aware, HMRC share information with DWP and they would be able to see this information, so said claimant must declare the accounts and stop claiming any means-tested benefits.

Am I wrong?

You cannot withdraw from a Junior ISA until the age if 18. This is from Lloyd's website:

Other than transfers to another junior ISA, no withdrawals can be made from the account until the child is 18, except if they become terminally ill or die

So yes you're wrong. The accounts are in the childrens' names and the funds cant be accessed until age 18

@dementedpixie Oops, I mistook ISAs for Child Saver Accounts.

Would this be any different in this context then?

Probably, as you can access normal savings accounts whereas Junior ISAs cannot be touched except in exceptional circumstances

If it's your child's savings and in your child's name then they are not counted towards your capital limit. Just make sure they are in your child's name.

Even normal savings accounts in children’s names/parents don’t count as your capital for benefits.