UC review - over 16k childs savings

[Gabbygirl]

I need advice, i am so worried and stressed!

I have been asked to submit 4 months bank statement for a UC credit review. At first, I had absolutely no worries. I was talking to a mum at the school about it and she said to make sure that i upload my children's savings account as she had too due in her review.

I said to her that i didn't think they was included in my UC claim as they are children's savings accounts, in their own name. She said if I had access to them ( which of course i do, i set them up!) then they are included in my capital.

I rushed home and i've been doing some online research and the information is confusing but it does look like she is right.I can't believe i have let this happen.

I have gone through all my bank statements/uc payments and if my math's is correct i have been overpaid over £14,000 in the last 5 years.
( Any month over £16,000 savings i have calculated to owe back in full, any month over £6,000 but under £16,000 i have done £4.35 for every £250??)

Between nov 2025 and July 2020 - there is 11 months i was over the 16k and should of not got anything and besides 4 months, every other month the savings was inbetween £6000 and £15,999.

( I have some savings myself between £2,000 and £5,000 over the 5 years. I never included my children's savings, so depending how much i had, would take me over the 16k at times but not constant)

I feel sick with worry and i feel so guilty that such a stupid mistake can have a massive affect on my children and our home life. I am a single mum to 3 children and the thought of being taken away from breaks my heart. I know i have made a mistake and it is not fair for tax payers to have to pay for my mistake. I know i need to pay it all back and make everything, I am just so scared and i just don't know how.

I don't expect sympathy, this is my mistake and i need to handle it but any advice would be hugely appreciated.

Presumably you can pay it back out of your child's savings though? And, presumably, you put it in their names in the full knowledge that if it was in your name it would affect your entitlement?

Firstly, dont try and cover it up. It will surface eventually and covering up is where the problem comes in.

Next, get clear for yourself on where the child’s savings came from. It’s potentially slightly different depending on whether it’s money Youve put aside for them, or it’s come from other sources.

Expect to ultimately need to repay whatever the calculation is of what you’ve been overpaid. It would normally be done through a manageable payment plan. Although that payment plan may take into account he large cash balance sitting in the savings account.

(Do not try and shift it somewhere, that will ultimately show up too).

If you explain to them that you didn’t know you will be able to pay it back immediately then reclaim as the savings will then be gone and you’ll be eligible again. The important thing is just to be honest.

Is it only your children's money that's put you over £16k?

I'm not sure your friend is right about having access to it = it being your money.

There's a gulf between money that's legally yours and who owns it beneficially.

In who's name are the accounts?

Yes just pay it back out of the savings. Then Consider a junior isa which would be the child’s money and not yours and therefore not be counted as your savings.

Well if you were not entitled due to those savings you just have to use them to pay it back.

It's unfortunate but obviously they can't just give out money to people with over £16k. It's naive you'd think your children's savings wouldn't be linked to you if you set up the account and can take/add to it and have been.

I really hope the OP is having us on a bit here, or that the £16k in the child’s account is something like a gift from grandparents.

We’re two adults in the house, both working full time, one child, and we can’t even manage to put aside £50 a month for our own DC at the moment. We’ve never been entitled to a penny in support either.

Everyone’s circumstances are different of course, but when you see figures like £5k in personal savings and £16k in a child’s account while still receiving UC, it does make you wonder what on earth we’re doing wrong.

Do you actually have access to it though? My child's savings are in a Child Trust Fund account that would be impossible fir me to withdraw from - it can only be accessed by my child when they turn 18 and not a day before. I am sure that couldn't be counted as "my" capital for benefits purposes. If you've kept it in an easy access account and are able to make withdrawals then it's quite right for it to be counted as yours, otherwise it would be too easy to just pretend it belongs to your child while actually treating it as yours and spending it on holidays and treats.

Do you have access as in you control the account and can take money out? Or is it locked in a trust fund in their names?

Be honest, upfront and ask for help. Happened here (different circumstances) and they arranged a repayment plan through deduction from benefits

They are childern's savers account with Halifax, the accounts are in my children's name.

over the last 5 years i've floated between £2,000 and £5,000 savings. My children have £4,000 each, depending how much my savings were, depends if we reached the 16k for that month. From jan 2020 to Nov 2025, there was 11 months where we passed the 16k limit.

If they are in the children's names ie opened in their names with their details etc then they are not counted. It isn't relevant whether you can access them or not. They do not count towards capital for the sake of UC. Your friend is incorrect.

but it is a childern's savers account with Halifax and the accounts are in my children's names. The savings has been made up of christmas/ birthday money, gifts from family, some inheritance when my nan passed, then from my wages/benefits. ( I will be honest, I can't defintley say none is benefit money as once it's in my account it gets mixed up with my wages. )

I'm gutted for my kids that the money they've had now has to be given back when it was completely my mistake. But i will work hard to try and build their savings up again. It is my fault at the end of the day..

There is so much misinformation online, it is hard to get a right answer.

They are childern halifax saver accounts, in my childerns names. I have to provide their ID, date of birth ect when I opened them. As they are under18, i am also on the account.

This is the problem with UC. By sheer luck my DC's savings all went into national savings trust funds and the UK gov trust fund so I can't touch it. Luckily my eldest is a sensible lad so has locked the money away at 18 into an ISA.

Will UC let you transfer it into their names or will they count it as deprivation of capital?

I have 3 children, each child had 4k.

It is from Christmas/birthday money. ( We are small on space in our home so no family buy presents they gift them money instead) My nan passed away in 2018 and left money for each of my children in her inheritance....

My husband and I have put between £5 and £10 a month in savings for my 8 year old since she was a baby. She now has a couple of thousand. You don't need to put loads in each month. It might also be gifts from grandparents etc.

I really don't know. As i mentioned before out of the last 5 years ( 72 months) 11months we was over the 16k. The rest besides 4 months, we was over the £6,000 so should of been a reduced amount.. i've added up a £14,000 overpayment. I don't blame them if they want it back, it was my fault

That's fine. If you look up the gov.uk website it says:

"Money, savings and investments that belong to your children, and are in their name, are not taken into account when assessing your Universal Credit.

That applies even if a parent is effectively managing the account (because JISAs and similar child savings accounts are often opened by a parent/guardian). The ownership belongs to the child."

It is in a halifax childs' savers account in their name

Are you able to link me to this page please? Thank you so much!!

If it doesn’t count, then what is to stop everyone putting all their savings in their children’s accounts so they are eligible for UC?

It is hard to find the right information. I should of looked into this originally but i didn't think it would be affected as i know its for my kids but i see how it can be used a way to save money.

I've been on UC since 2018 and this subject has never come up until today. Even when you look online, the information is not clear.

When you log into the Halifax app…does it say welcome @Gabbygirl or welcome “your dd’s name”? Are you the parent on the account? There’s usually a parent on the account.

Because they do periodic reviews and request statements for all accounts. It would become very obvious very quickly if people were doing this.