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Original poster

Uc and children's savings

30 replies

An0n1 · 11/03/2025 01:02

My other half and I recently split and as a result I'm now homeless with a toddler until our house sells and I'm hopefully able to purchase another. Family have been great and we're staying with them and they've not been charging me anything but asked me to save as much as i can to get back on my feet. I'm currently in receipt of uc just for childcare costs and at present stbxh is paying maintenance for ds but I can't rely on this as I know he'll lose his job soon (due to the reason why we split) and I've been trying to save any and all money he currently gives me in an account for ds because I know that its only a matter of time before he's contributing nothing and when I do get housed things will be very tight so i want to have something set aside that i can use for ds if I'm struggling. He doesn't see ds at all. I work full time and I'm high up in my sector but it's not a well paid sector so my wage is very average. Getting the childcare element of uc entitles me to legal aid. If I had to pay these costs myself I'm guessing I'd probably walk away with nothing as we don't have that much in equity. My solicitor isn't able to give me any indication of how much my legal fees will be which is worrying. Rental fees in this area are so high that it would be more sustainable for me long term to buy as the repayments would be half the cost as rent plus is obviously more security for ds.

My question is, I know I can't have more than 6k in savings and still claim uc, but will they take into account money I've been able to put away for ds? I've managed to save a few thousand between ds savings pot and a house savings pot, I'm not that close to the 6k mark yet but I just want to make sure I'm keeping myself right.

My solicitor is good but expensive, but the reasons we separated are to do with stbxh criminal behaviour around other children so it's really, really important to me that I retain the legal aid as I'm scared that he could end up on benefits and be entitled to it and be in a better legal position than me as a result if I were to lose mine. I'd never afford my current solicitor without the legal aid. Any advice would be helpful it's all been a lot to process.

OP posts:
Iamallowedtodisagreewithyou · 11/03/2025 03:04

No in a nutshell.

No you can't stash money away in your kids name and still get UC. Well, not it you can access the money anyway.

Thistooshallpsss · 11/03/2025 04:52

UC stops with savings of £16000. Between £6000 and £16000 your universal credit gets reduced as it is assumed you could earn interest on the capital. The rate is £4.35 for every £250 over £6000. Savings already in a child’s account which is in their name and you don’t have control over don’t count. It’s all explained here www.gov.uk/guidance/universal-credit-money-savings-and-investments#childrens-savings

Teeheehee1579 · 11/03/2025 05:08

You are stashing money in an account that you will have access to and will use if things get tight is not the same as you putting money in a savings account that only your DS will be able to access when the time comes. If you intend to be honest about it then I would seek advice from UC but I suspect the answer will be that it has to be an account that can only be accessed for and by your DS, not one that you can use otherwise everyone would be doing it simply to get the highest possible rate of benefit whilst staying money away for other things. Your situation does sound awful though so hopefully something can be worked out.

Bromptotoo · 11/03/2025 07:35

You can have up to £16k in savings and still get UC. If you've got above £6k UC assumes you have tariff income of £4.35/month for every £250 or part of £250 over £6k.

If the 'pot' is identifiably beneficially as your son's money then UC can disregard it.

If it's really your 'rainy day' fund that you dip into for household cost then it will count towards the £-£16k limits for UC.

When you say you only claim UC for childcare I suspect you mean you only get a payment in each AP because you pay for childcare. Your award will still include a Standard Allowance and a Child Element. If you rent then, subject to the limits set by Local Housing Allowance, you can claim housing costs too.

iwentjasonwaterfalls · 11/03/2025 07:37

We had to put DD's into a JISA for UC to disregard it, even though it was a building society account in her name, because I'm the signatory they said we had to declare it.

Bromptotoo · 11/03/2025 07:41

Whatever it is you have to declare it.

It's up to DWP, not the claimant, to decide what's disregarded.

Lovelysummerdays · 11/03/2025 07:42

If it goes into savings account that’s only accessed at 16/ 18 then it’ll be disregarded. If it’s in an account that you can withdraw from then it’s yours for UC purposes.

Waterlilysunset · 11/03/2025 07:45

Do you have an accessible or non accessible account OP?

SleeplessinPendle · 11/03/2025 07:48

Sorry, I've just reread your thread. No you can't do that if it is more than the savings threshold as it is not savings for your DS, but accessible by you.

minnienono · 11/03/2025 08:02

No you can't if you can access it. Certain trusts don't count, nor does a jisa locked until 18.

Sinkintotheswamp · 11/03/2025 08:06

This is the problem with UC. It means parents have to risk moving childrens accounts into their names and have them spend it at 18. I moved my eldests money over as he's sensible and I laid the law down, but I've had to keep my younger teens money under my umbrella as she has MH issues.

Mindymomo · 11/03/2025 09:26

Could you pay family that you are staying with “rent” and ask that they keep it for you once you are settled, obviously only if you trust them not to spend it. Other than that take cash out each month and keep somewhere.

Bromptotoo · 11/03/2025 10:26

Lovelysummerdays · 11/03/2025 07:42

If it goes into savings account that’s only accessed at 16/ 18 then it’ll be disregarded. If it’s in an account that you can withdraw from then it’s yours for UC purposes.

It's not that simple.

McSpoot · 11/03/2025 10:46

Mindymomo · 11/03/2025 09:26

Could you pay family that you are staying with “rent” and ask that they keep it for you once you are settled, obviously only if you trust them not to spend it. Other than that take cash out each month and keep somewhere.

So, you're suggesting that the OP commit fraud?

Original poster
An0n1 · 11/03/2025 10:48

When I say it's for ds for if things get tight i do mean for long term (should have been clearer on that) so if he needs help with bigger things that I wouldn't otherwise have the means to help with I can still do that in the future if my ability to save has been compromised. So in that respect I don't need to have access to it right now but equally i don't want him having free access to that money at 18. I very much see it as his money, not a pot that I would just dip into for household expenses. I have a separate rainy day pot which is the money I'm putting aside for a new house.

I'm not in the least suggesting I do anything fraudulent - I'm asking to keep myself right while also trying to protect my child and his interests in the best (and appropriate) way that I can.

OP posts:
Chewbecca · 11/03/2025 10:49

What sort of legal fees are you looking to use the Legal Aid for?

Original poster
An0n1 · 11/03/2025 10:55

Chewbecca · 11/03/2025 10:49

What sort of legal fees are you looking to use the Legal Aid for?

Tbh I feel very unclear about what costs are associated with the divorce which is what's scaring me and my solicitor has said she can't tell me upfront costs because it just depends on how things go.

Stbxh is being investigated criminally separately so it's in his interests to drag the divorce out as long as he can so I'm really worried about how much that might cost me. I know he has to pay for the divorce but I need to pay my part of the financial aspect. And then it depends if he seeks legal action to see our toddler which I obviously don't want given his other behaviour. So there would be legal costs attached to that as well.

OP posts:
Chewbecca · 11/03/2025 11:05

https://www.moneyhelper.org.uk/en/getting-help-and-advice/divorce-and-separation-advice/legal-aid-and-other-help-if-you-cant-afford-divorce-or-separation-fees

Except in certain circumstances (which you might meet given what you have said?) LA isn't available for divorce costs.

Original poster
An0n1 · 11/03/2025 11:33

Chewbecca · 11/03/2025 11:05

https://www.moneyhelper.org.uk/en/getting-help-and-advice/divorce-and-separation-advice/legal-aid-and-other-help-if-you-cant-afford-divorce-or-separation-fees

Except in certain circumstances (which you might meet given what you have said?) LA isn't available for divorce costs.

Where I am uc is a gateway benefit for legal aid.

OP posts:
Dairymilkisminging · 11/03/2025 11:33

You can put money into a child isa and it won't be counted but normal bank account will be counted. Legal aid wise you'd only be able to use it for if he took you to court for access to the child

Dawninglory · 11/03/2025 12:15

Child maintenance is not affected under UC if you are spending it. Unless in a child ISA, it would be counted as savings. Maybe cash can be stashed though!

caringcarer · 14/03/2025 01:26

Put your sons money into a Junior ISA and lock it in until he's 18 and then it would not count. Almost every other account would be seen as you having the means to access it even if you do not intend to. You have to say where you bank and any money DC have on claim form. Remember I think they can check bank accounts now. Not sure when the checking starts actually.

Bromptotoo · 14/03/2025 08:04

Dawninglory · 11/03/2025 12:15

Child maintenance is not affected under UC if you are spending it. Unless in a child ISA, it would be counted as savings. Maybe cash can be stashed though!

It's not true that an ISA is the only way to deal with a child's money for UC.

The DWP will be interested in who has the beneficial interest in the money. Locking it into an ISA is one way of demonstrating that. There are others and it doesn't have to be locked away until the child is 18.

Original poster
An0n1 · 14/03/2025 11:38

Me again with further queries! If I have access to a joint account which is no longer used post separation- is that taken into account? We're working on a financial settlement at present so I don't use any of the money in that account as there still needs to be an agreement of how that will be split so my solicitor had advised me not to touch it until that was in place as some of it will probably go to my ex and be his money? Sorry, I've no idea how this all works and so scared of doing the wrong thing by mistake!

OP posts:
Bromptotoo · 14/03/2025 15:24

Who owns the money in the account?

You, soon to be ex, or both in equal shares.

Is there enough there to make a difference to UC i.e. take you over either £6k or £16k?