Have I seriously messed up DDs UC claim with savings - what to do?

[CatsOverheating]

Young adult DD is having to make a first UC claim because of health issues. When they were children by making sacrifices I had gradually squirrelled some money away for the future for her and her sibling, including birthday gift money and money from a grandparent (now deceased) but I had kept it quiet so that it wasn't pestered or frittered away. It was meant for university, a small safety net and similar important things for both of them if I'm not here.

DD has been asked about savings in her UC application and so has asked me if there is anything to declare. I've looked out the paperwork for the first time in years and I think I've really messed things up for her claim. There is much more in her savings account than in her sibling's savings account, when it should be equal. I remember mislaying her sibling's building society passbook, and so putting the money into DD's, intending to transfer it over in the future to make equal amounts in each. I obviously didn't get around to doing this! I feel such a fool and could kick myself.

There is around 11k in the account in DD's name and under 3k in her sibling's. This obviously isn't what I intended at all - about 4k in DD's name belongs to her sibling. I can't afford to make this right myself, so I need to transfer that money over. If DD wasn't about to make a UC claim that is exactly what I would do to make things fair and equal.

How do I deal with this correctly? If the money stays in DD's account she will have about £90 a month deducted from her UC payment if I've got my sums right from googling, which she can't afford, and when it's not actually her money. If I transfer it out I'm concerned she will get into trouble with UC. Can anyone help please before she puts the claim in and I do anything?

I've just seen this. If your daughter can't touch the money until she is 21 then she may not need to declare it at all. But you need to check with Citizens Advice or someone who can tell you for sure what the position is

Can you say any more about why you think this @Catsknowbest ?

Agree 100%. Benefits should be for people to live on day to day, who otherwise couldn’t afford to survive. We’re in a cost of living crisis. Most people who are working and not claiming benefits can’t afford to save either. The benefits system is so screwed up.

Simply because if you can document the nature if the savings/trustee status etc this could be important in explaining to DWP; all evidence you have could help. I know it may still not change the outcome but I would present everything if that's the way you decide to go.

Yes its screwed up. For the people who needs benefits. It's not enough to live on.

This in addition to what I just posted.

People without any savings at all, on benefits, and no house will probably end up street homeless without family help. You need a deposit and advance rent.

If she can’t touch it until she’s 21 and you’re a trustee she doesn’t have to declare it because it’s not hers legally yet.

And most people can’t afford to live on their salaries either. We’re currently not using the heating at all, as just literally can’t afford to pay for it. Unfortunately this is happening in thousands of households where people are employed in full time work.

Yeah, better watch out or people will save up enough to get themselves out of the situation where they need benefits!

Why is this relevant to the OPs original question? I'm a working/caring/partner disabled forces veteran household. We are all facing these challenges.

People on benefits are still worse off than people in full time jobs.

However People who have always had money have never really had to survive on nothing so they don't know what its like and don't know how to budget properly and now the economy is in the tank they are now panicking.

Accidentally op says..how can you Accidentally keep putting 4k+ of one child's money into another's account?
Does your other child know you've done this with their money?! Is dd the favourite?

I actually think it's sad your main concern is dd, and not the fact that for years you've taken money meant for one child and given it to another.
Would your 'mistake' ever have come to light if dd wasn't negatively affected?

It's literally in the op.

I'm going to back that point up - I wasn't going to but I am getting irritated - by the fact that I have returned to FT work despite being carer for my partner who has disabilities arising from military service then 2 strokes, because we could not manage on benefits. And yes that includes everything we are entitled to for his condition because I am a welfare specialist, the area I have returned to work in, so I know what those entitlements are. I now juggle that work with caring. Do you think I would have made that hard choice if benefits was such an easy option?

Didn't 'take' anything...? Gave savings. Seems a strange thing to jump in with

I believe if the money is entirely inaccessible until age 21, it isn't counted. It might be different if your daughter is allowed to withdraw money through you, though.

(I agree with others here that you should contact Citizen's Advice rather than rely on our info here.)

Also, we recently contacted citizen's advice about a relative on disability benefits who has over the savings limits and were told driving lessons or a car (obviously not an overly expensive one) are permissable expenditures. But, again, I'd check as circumstances differ.

I'd suggest writing a list of all relevant details and questions before calling. They were really helpful when I needed advice and went through details with a fine comb, looking at everything.

It’s hardly surprising that her main concern atm is her DD with health issues navigating UC and the problems this may cause.

Well if you're going to be pedantic... some of the money was 'given' some left by a grandparent.

SleepingStandingUp · Yesterday 23:44

MrsSkylerWhite · Yesterday 22:43

How did that happen?, £11K to one and only £4K to the other?

It's literally in the op.

It is, you’re right and I’m a skim-reading eejit 🥴
Sorry, OP.

You're not actually here to contribute anything useful, just criticise the OP from what I've seen. So I'm not really interested.

I don't think she actually cares about the real issue. Just popped in to show the OP the error of her ways........🙄

There are some strange responses appearing on this thread. Perhaps it is because it is appearing in Active around the witching hour and during/after wine o' clock.

It would be nice if those people wandered back to AIBU where they belong rather than making unwelcome trouble on a thread in Money Matters. Or had a nice little sleep.

Thanks to everyone else.