UC and Child savings

[Anono1001]

Hi

I have now migrated to UC which has been ok, despite the refusal to accept my pension contributions into Nest so they are calculating my entitlement on the wrong earnings (I've escalated this and also flagged it with my local MP as this will happen every month).

From what I've worked out I will pretty much be on the same level as I was before migrating (no TP) thank god.

I've always saved for my child since they were a baby. If UC ever wanted to check this I can prove it has been the exact same amount each month since he was born. They had no issues with child savings when I migrated. I am looking at increasing those savings if allowed?

I am a worrier, especially for the future. Even more so when my child reaches the age where anything connected to my child financially falls away, e.g. CB, child element, disability, carer, maintenance.

What I would like is to start putting his maintenance into his ISA. For context my son's Dad is totally absent and the maintenance is forced from his wage. He has absolutely no other input into his child's life other than this small amount being forced from his wages. I'm not going to say it doesn't help the household (son and myself) but I very much see it that I do and pay for everything. The fact he has chosen to be completely absent I guess makes this decision abit easier for me to consider. Some may tell me to stop taking it but ultimately he legally has a financial obligation to his child regardless of his decision to not be around. It is also inconsistent as he moves jobs, and it's the inconsistency I can't stand as I find it really difficult to live like this not knowing if one month it will arrive or not.

I guess I want to live like it's not part of the household income now so when it does eventually permanently stop it won't be missed. Will I be allowed to do this and increase the savings I am currently saving for my child?

Hopefully I've made sense.

Thanks

Household savings is up to 6k before it’s taken into account, and a reduction for anything between 6&16k. There is now a small allowance for children’s savings 3k per child.

Sorry I meant about increasing the amount I save for my child. Will it be allowed. Savings go into an isa that cannot be accesses until his 18

Unlikely, and I honestly hope not. I’m on UC, luckily for me I have a small amount of savings from an inheritance, but if you can afford to save significant amounts then you don’t need UC.

I think you've missed the point of the thread. Child maintenance is not taken into account when calculating entitlement for UC. Saving it would not affect what my household is entitled to.

Also you will have read it is an inconsistent payment so cannot be relied upon.

Save it then if you want and you think those savings won’t affect your entitlement.

But that's kind of what I am asking as I am new to UC and don't know.

As far as I am aware Child Maintenance is separate from UC so isn't taken in to account when calculating entitlement. I may be wrong?

My son is disabled and I am worried for his future. I was wondering as CM is separate if I could put it in his ISA every month or would this not be allowed

If it's in a junior isa, it won't affect your UC at all no matter how much you save.

I am saving whilst on UC. Why shouldn't I or OP?

Children's savings don't affect your UC.

Children's savings are disregarded. As long as the account is clearly there's it shouldn't be a problem.

Thanks. I've saved for him since he was born. It's only a small amount each month. The maintenance will be an additional saving which I was hoping wouldn't be questioned for UC?

The whole maintenance thing has played on my mind for years. His Dad is very controlling despite his absence. He never considered his child and it was always about me and how he could/can make my life difficult. It's money that he doesn't give freely. He evaded the CMS purposely for months hence why it ended up being forced. Then he keeps changing jobs meaning it takes months to find where he is again to reset it up.

When my child turns 18 I am really worried how things will be when the majority of the household financial support will fall away because of his age. His needs will make it very difficult for him be/live independently. I'm not sure how or if employment will ever work out for him either. I worry alot for his future. I already work full time so working more isn't an option.

About 6 years ago over an email his Dad told me he was fulfilling his duties as 'a father' and paying his way despite having no contact, he had already had NC for a few years at that point. I think that was the moment that made me so angry, I got upset and told myself I wish I didn't have to take this money. It's a grand figure of £110 a month, I mean that's life changing right and on a par with what it costs to raise and maintain a child!!!! I hope you sensed my sarcasm. From then on i guess I felt a bitterness towards it, because the little contribution forced from him absolutely is not on a par with what I pay out and have to do. Not even close! Over the last three years I've increased my hours up to full time. It's come with its challenges as my child has found it difficult but we are managing to make it work.

I guess I'm just trying to control the future loss of this extra bit of money coming it. I don't feel his Dad helps at all, but I do think he absolutely should financially support the child he has helped make, even if he isn't willing to contribute his time and presence. I think another fact fueling this thought is because his Dad is not a stranger to having money forced from his wages (he has other children he is absent from) and when he found out the other Mum no longer wished to make a claim he jumped for joy and was fist bumping the air he was so happy. It turned my stomach his attitude towards supporting his children. He simply doesn't want to! I would rather absorb the loss now and invest it in my child's future so when it does eventually end I'm not going to miss it.

I hope I've made sense. This is not about me trying to hide money. Saving his CM for him will not give me any more entitlement from UC

OP ignore that poster. It is fine for them to have an inheritance but you aren't allowed to save. As long as you can't touch it and access it to use it it is fine.

DWP guidance is crystal clear that a child's capital does not count towards the £6/16k thresholds where it would affect an award of UC.

https://assets.publishing.service.gov.uk/media/65d336b3e1bdec2be1322238/admh1.pdf

See para H1077.

@HippeePrincess where does the limit of £3k you mention come from? I think I've seen a reference to it on Money Saving Expert but I cannot locate it in legislation or guidance.

OP is quite clear that the money being put away is derived from maintenance paid by the child's father. Government, having learned from the Child Support farrago 30 years ago, disregards that income from benefit calculations.

Thank you for the guidance details. Really appreciate it

@Bromptotoo I read it somewhere at some point in some benefits guidance when I was applying for things, every application to benefits I’ve ever made has asked for capital to be declared, including children’s capital, perhaps it doesn’t any longer but I can’t see them getting rid of those rules otherwise people will just having savings in their children’s accounts.

no maintenance isn’t counted as income for UC but doesn’t mean that savings derived from it would be disregarded.

I would advise people to declare their children's capital but to make clear that the beneficial interest is that of the child and be ready to prove it. Children's savings accounts should be clearly designated as such; the bank will facilitate this. If you decide you don't need to disclose because they will be disregarded you're on a slippery slope.

Hiding money in children's accounts with the intent of gaining title to benefit, or getting more benefit is deprivation.

As to whether one can/should be able to accumulate savings from child maintenance we will have to agree to differ.

Suppose the separated parents had an amicable relationship. The Father, not on benefits and not the 'custodial' parent, put the amount a Child Maintenance calculator suggested was appropriate in an account for his son would you have an issue with that?

if your son is disabled and may be unable to work in future then him having a lot of savings may prevent him from claiming UC himself so he won’t really benefit