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Universal Credit and DLA

8 replies

Ladydish · 29/07/2025 22:36

DD receives DLA. I’m a single working parent and for the last year (since separation) have been receiving approx £200 per month in UC.

At the time of applying I asked if DD’s DLA would count as income as was told no as it is for the child. The DLA is paid directly in a separate account (in child’s name) and use it to pay for larger things as required (yearly club subs, therapies etc) over the last year there have been 4 large payments out of his DLA account to pay for things she solely benefits from. Nothing else goes in or out of that account.

Ive had a UC review and have since been told that DLA isn’t counted as income provided it doesn’t build up but my DC’s account has put me over the 16k threshold (the amount in this account wasn’t 16k but when combined with my savings, they jointly are). I’m currently waiting to hear how much I have to pay back.

I’m wondering if it’s worth appealing this? I could spend the DLA every month but by using it the way I do my child really benefits. Ive recently informed SS of improvements in DC’s mobility to have her award reclassified to the lesser amount. I’m absolutely confident this has been as a result of the way I’ve spent her DLA.

OP posts:
22O725 · 29/07/2025 22:48

You have no argument here, it isn’t counted as income but if you save money it’s savings.

ARichtGoodDram · 29/07/2025 22:54

UC don't normally take children's savings into account, however they will do if they feel the money is only being put into the child's name to prevent your own savings going over the limit.

Have you been having money deducted for being over 6k in your savings?

What are the splits in the 16k between your savings and your child?

Ladydish · 29/07/2025 22:58

ARichtGoodDram · 29/07/2025 22:54

UC don't normally take children's savings into account, however they will do if they feel the money is only being put into the child's name to prevent your own savings going over the limit.

Have you been having money deducted for being over 6k in your savings?

What are the splits in the 16k between your savings and your child?

Yes, deductions were made to account for my own savings which were approx 9k.

OP posts:
Ladydish · 29/07/2025 23:00

ARichtGoodDram · 29/07/2025 22:54

UC don't normally take children's savings into account, however they will do if they feel the money is only being put into the child's name to prevent your own savings going over the limit.

Have you been having money deducted for being over 6k in your savings?

What are the splits in the 16k between your savings and your child?

The account in DD’s name is literally DLA and payments for her (approx 4/5 a year) I provided information about what each of these payments was for- very clearly child related.

OP posts:
ARichtGoodDram · 29/07/2025 23:29

I think having 7k+ saved in her name is unlikely to be overlooked. Is there a plan for spending it?

They do generally expect DLA to be spent month to month so I think you'll struggle to have it discounted unless you can show a specific plan for it (and even then the DM might not agree to ignore it).

Get proper advice though. You might think it expensive but you can't really afford not to.

Bromptotoo · 30/07/2025 08:53

ARichtGoodDram · 29/07/2025 23:29

I think having 7k+ saved in her name is unlikely to be overlooked. Is there a plan for spending it?

They do generally expect DLA to be spent month to month so I think you'll struggle to have it discounted unless you can show a specific plan for it (and even then the DM might not agree to ignore it).

Get proper advice though. You might think it expensive but you can't really afford not to.

The beneficial ownership of the DLA lies with your daughter not you. Children's savings don't count towards capital in UC.

There's a lot of nonsense talked about how money held by/for a child needs to be differentiated. In this case, the account is in their name so you should be home and dry.

As it seems DWP say different get advice from Citizens Advice or similar and appeal.

Princess23 · 04/12/2025 10:53

Hi does anyone now how much u get child disability element on uc for middle rate care low mobility please thanks in advance

Bromptotoo · 04/12/2025 13:35

Disability element is £158.76 on top of normal Child Element.

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