Money for son on benefits

[DrRuthGalloway]

Hi.
Since my son was born we have saved him money and had intended to hand over the pot on his 21 birthday. It will be 10k. Originally we thought this could be used to buy a car or start a house deposit.

However DS is autistic and unable to work in paid employment at the minute, or for foreseeable - next few years anyway.

We intend to support him to claim benefits as he currently has zero income and lives with us.

I recently found out that the savings would lead to a reduction in any benefits he could claim. Obviously we don't want that.

Can we keep the pot of money and maybe give him a small amount each month instead? Would this enable him to claim all his benefits? It seems wrong that the money we carefully set aside each month for years when we had nothing should be used to reduce what he is entitled to as a disabled person.

I don’t understand why you didn’t claim dla as a child then pip for him. It bizarre that you saved money whilst not enabling him the money he is very likely entitled too. You have let him down here. He doesn’t need a supporter to claim you would be his appointee.

He did get dla and we applied for pip when he turned 16 and got turned down. Since then the wheels have come off for him in terms of mental health etc.

If you become an appointee this will be helpful for you both in managing his finances longer term. Particularly if this is something he struggles to do.
I think your plan to keep the money in your name is a god one.

You could be talking about my ds (also 20) OP!

He gets UC (unearned income) and PIP - I act as his appointee and carer. He occasionally dies some work e in a zero hours contract - mainly to give him some experience to put on his cv.

His PIP comes to me and I (with his agreement) keep some towards board and lodgings and he has the rest. He struggles with the idea of managing his money/direct debits etc - it makes him v anxious so in your situation, (assuming you are legally allowed) I'd be drip feeding him that money on a monthly basis. He will still need to declare it to UC but it won't affect his claim if it's in smaller monthly amounts I don't think?

I think some people are missing that the money is in what was a children’s saving account so DS is likely to be considered the beneficial owner of the savings.

As DS is NEET because of his SEN have you considered applying for an EHCNA? Especially if the provision could work on his communication and independent living skills.

He has an EHCP

Yes I know it's outrageous that he is NEET with EHCP. Has been since March. Waiting for Ed psych availability.

Don’t forget if you’re going to claim universal credit you will need a sick note from the doctors when you apply or they will put work commitments on his account.

DS should not be NEET with an EHCP. As the placement has broken down the LA should be arranging interim provision, via EOTAS if necessary. The LA must still provide any provision specified and quantified in F. If they aren’t write to the Director of children’s services threatening Judicial Review.

The LA are stringing you along with waiting for an EP. Yes, they are in short supply but since March is ridiculous. If you have formally requested a reassessment of needs there are statutory timescales the LA are in breach of, if an LA EP can’t assess within the timescales they must commission an independent assessment (which also have long waiting lists at the moment but LAs can find one within the timescales if they actually try). If you haven’t formally requested a reassessment of needs you should.

Could you invest it on his behalf for the future, keep it in a high interest account, premium bonds etc. I think a LISA or SIPP will also impact his benefits but these are also other options so that he has money additional during retirement.

Something else you may not be aware of is if he is on benefits he will also be eligible for a Help to Save account, £50 a month for 4 years with 2 bonuses one half way and the other at the end of the accounts term.
Years 1-2: £5024 months = £1200 +£600 bonus
Years 3-4: £5024 months = £1200 +£600 bonus
Max total = £3600

ugh it changed the formatting
Years 1-2: £50 x 24 months = £1200 +£600 bonus
Years 3-4: £50 x 24 months = £1200 +£600 bonus
Max total = £3600

Yes, this is what I wondered.
I don't know much about children's savings accounts but I thought that they were supposed to transfer to the child once the child turned 18.
I guess you would need to check the T&Cs of the account and/or contact the bank.
However, as I pointed out in a previous post, even if the £10k is already in his name, he would still be entitled to UC, just a reduced amount.

What's an EHCNA?

It’s an education, health and care needs assessment. The assessment prior to the LA deciding whether they will issue an EHCP or not. They exist in England. Wales, Scotland and NI have their own versions.

@DrRuthGalloway
Hi. I used to work for UC. I would say you should just change over savings to your own name,get the appointee status sorted, and THEN start the process of claiming UC for your son,in that order.
. Remember to state all things to be considered re his mental health.
What you want ideally is for him to go through what is called the 'health journey' , supply medical evidence, complete the UC50 form which they will send you. (You can also find this and download the form on gov.uk website). After a few months he/you will receive a call from an assessor to go over the medical side. They are looking to see how his condition affects his working capabilities so be very strong on this. Make sure you detail every single possible thing that he may struggle with in a working environment, including travelling there and back on his own. (Don't volunteer information for example: I can drive him to work because he won't manage/be comfortable on public transport)
There could potentially be 3 outcomes to that assessment.
1- Perfectly able to work/no issues.
2- LCW. Limited capability to work meaning he will be expected to at least try to find work and may be offered to attend mock interviews,workshops etc.(not likely, most areas are seriously underfunded) or...

1. LCWRA Limiting capability to work and work related activities. If he is awarded this, he will not be expected to 'do' anything and will be awarded more money on his UC claim. I think it is currently £344. The money you have saved on his behalf do not mention. Just make sure he is NOT the named beneficiary of said money.

PIP form is much like the UC50, the difference being the assessors for that benefit are looking to see how his condition affects his day to day living. Again. Be strong and detail every single that he struggles with. If after all that ,his claim is declined Ask for mandatory reconsideration.Ideally you want to involve your local Welfare Rights People. (Contact through your Council). They are very good at completing these forms in my experience and if the claim for PIP is denied they will help you fight it and usually win.
It's a very long process but ultimately helps secure your son's stability. I have been through the same as a Mum and also seen how it works from the inside. Best piece of advice I can give you is contact Welfare Rights Department in your area and never take no for an answer. Message me back if you want to ask anything at all but I will only reply privately. Good luck. L x

I would say you should just change over savings to your own name…

As the money is in what was a child’s savings account DS is likely to be considered the beneficial owner of the savings so this would likely be considered deprivation of assets.

Thank you all very much. I need to go to the bank and see what is possible.

This thread has been very helpful to me, thanks for taking the time. I have now made the initial pip call. May have a training course on the horizon so just holding off on UC for a couple of weeks.

Sorry to be confused, but do you mean DS may have a training course on the horizon or you? If it’s DS, you shouldn’t wait to apply for UC because it will be much easier to establish LCWRA if DS is out of education.

Also, just because something is possible from the banks perspective doesn’t mean UC won’t see it as deprivation of assets so do be careful with that.

The bank account is in my name. I need to ask at the bank what it's legal status is.

I thought if DS was in education or training that would mean he wouldn't be entitled to UC?

The money is in my name but in a high interest (ha!) Child savings account, it appears on my bank statement as "Ruth Galloway re Charlie" (substituted names!)

This bit suggests DS would likely be considered by UC to be the beneficial owner (the legal owner and the beneficial owner aren’t always the same person).

It is possible for some to claim UC whilst in education. It is easier at 20 than 16-19, and it is easier if the original claim is made when out of education. Contact have useful information on this here and are worth speaking to.