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.

You won’t need to declare the sum to your own benefits, but if your child claims any means tested benefits themselves, then you would need to inform them.

It is fine, it IS your kids money. Of course you are the adult on the account, you have you do that for them to have an account.

However, UC will see that you are not moving money willy nilly between their accounts and yours, so it is not your money,not is it seen as such by them.

Do not stress!
Wait for them to tell you if you need to pay anything back.
If you need to, you call DWP Debt Management (08009160647) where they will settle you with an affordable amount you will pay every month - they will deduct it from your UC. You can choose the amount that it is affordable for you! You will not need to pay it back at once. Although they come across as as** they are very nice and understanding. They will help you out. All the best! (talking from my own experience, not heard from someone)

Get Advice from welfare rights
there is a limit on the amount of money that they can ask you to repay
if there are speciial circumstances EG you have problems with budgeting or anxiety about the situation is making you unwell you can ask to have the debt reduced or cancelled they would rather have you repay small amounts over a long period than impact your wellbeing and ultimately your ability to pay back anything

This is a bitchy comment.

She probably put the savings in her children's names because they belong to her children.

This is because people are just putting saving in an account with their child's name on it and saying it's their childs account. Why didn't you open a child ISA with Halifax? I've got no access to my children's ISA with Halifax. You say it's passed £16k for an amount of time, are you withdrawing the money to use or are is it for the childrens savings? Can you prove you haven't used any of this money for yourself? This might help them see your not abusing the system. They will ask these questions.

I've had a review done and they asked me why my sister sent me £20 (it was for my daughters birthday) and why I sent £14.50 to a friend. (We went halves on a takeaway for my birthday). I also had to send in my PayPal account statement. It's invasive but I'm happy for the extra top up as my wages don't cover all my rent and childcare. My bank is never out of my overdraft so it wasn't hard for them to see I'm not hiding anything. 😭

Can I just add they were really nice on the phone and if you can prove it's not your money you'll be fine. I'll just wait for them to contact you and explain. I wonder if you can change the accounts to one that you don't have access to until they are older once this review is done.

Why is that assumed? People open children account for the children not necessarily to avoid anything :/

I am very happy you are not bothered but just wow…
asking why you received £20?? And sent £14!! I am sick to my stomach how they treat you because you need it. Surely these amounts don’t change the overall…

You’re panicking over something you don’t even have to give them. Children’s accounts are legally the child’s capital, not yours, and UC rules do not require you to hand over savings held in an under-18’s name. Another parent has scared you by giving you the wrong information.

You also don’t have to upload any bank statements if you’re not comfortable. The DWP is only allowed to request information that is necessary and proportionate, and you’re fully within your rights to refuse anything that goes beyond that. They cannot demand access to private, sensitive data or to accounts that don’t belong to you.

If they ask again, you can simply say:
“Children’s savings are not my capital, and for privacy reasons I’m not consenting to upload accounts or data that aren’t relevant to my claim.”

That is it. You haven’t done anything wrong. You’re not in trouble. You don’t owe thousands. And you definitely don’t need to be handing over your kids’ accounts or years of personal financial information just because someone else misunderstood the rules.

Your "what if" scenario is pretty much what happened to me, in devastating circumstances too. I'm now stuck on UC and unable to really future proof my life. I don't decide UC rates so if I am careful and have an emergency pot why is that so awful to some people? Why is being in debt preferable? They'd probably hammer me for being reckless then. Some people have no idea just how easily their perfect smug life could collapse.

Im a bit late to the thread but I was told by universal credits that my sons savings were not considered if they were opened in his name

Exactly, I’ve seen it happen to friends and family. No one can see into the future and know what is going to happen.
Some of the comments on here and been awful.
I really hope that one day you stop just surviving day to day and start thriving x

https://www.gov.uk/guidance/universal-credit-money-savings-and-investments#childrens-savings

It is quite clear money in children's names is not taken into account. If it's a Halifax kid saver then the account is in the child's name. You simply manage it as the named contact as the child doesn't have legal capacity to manage it. It would be different if the account was in the name of "Gabby girl re child 1 name" because that would be your account designated for a specific purpose eg child 1. It cannot possibly be the case that an account you can operate but isn't in your name can be included in your UC calculation. Jeez, imagine you had access to work business account as a cashier - are the DWP going to take that account into account? If you are worried, contact cab for advice.

I believe its only if you have tge option to withdraw from your child's saving it should be taken into account.

I have 2 kids savers and it very much is my name on them. If I transfer money it appears as my name not the kids name.

I’m new to UC as I recently gave up my job to be a full time carer for my youngest, so I don’t know the answer to your question OP.

I just wanted to say, that all I see is a hard working single parent who is trying to secure a good future for her children, you have not been dishonest, and I really hope that UC will disregard the savings xx

Indeed some of the comments on this thread are horrid. Idk why I’m surprised considering I was told on a thread recently that I shouldn’t be claiming UC because I can afford luxuries. One of the “luxuries” people took issue with was a £5.99 pcm netflix subscription.

If you are also on the account then they are not your children's accounts. If that could be done, every Tom, Dick or Harry would fiddle !

Are you able to withdraw money from your children’s accounts? They might consider it your money if you can.
How much of your children’s savings are from inheritance? Did the will directly give the money to your children? Were they named in the will? If so I’d say that money at least would be considered your children’s

Just explain to DWP and they will let you pay it off in instalments, probably by reducing the amount you get from UC.
I would be very surprised indeed if the child's savings did not count, because you have full access to it.
This will have come up before- just be honest.

My understanding is children's ISAs are not considered but children's savings contribute to household savings and anything in a child's name over 3k that you can access 'could be' taken into account.
That maybe old info, I'm not up to date.
As every case is different just be honest and take it from there x

So your situation is not the same as OP's then where her DC's savings accounts are in their name only.

Then be prepared to be surprised ...
I was a volunteer adviser at Citizens Advice for 10 years. Here are three reliable sources confirming that children's savings held in their names (as OP's DC's savings are) are NOT counted in OP's UC claim. (I've included the links to the info' as well as reproducing the pertinent paragraphs here):

Citizens Advice: www.citizensadvice.org.uk/benefits/universal-credit/on-universal-credit/check-how-much-universal-credit-youll-get/#h-3-check-if-your-income-or-savings-affects-your-payments
3. Check if your income or savings affects your payments
You'll get less Universal Credit if you get money from work or other places, or if you have more than £6,000 in savings or other investments - called ‘capital’.
If you have a partner you live with, their income and capital will also affect your payments.
If you have a dependent child or anyone else living with you, their income and capital won’t affect your payments.

Government website: www.gov.uk/guidance/universal-credit-money-savings-and-investments#childrens-savings
Children’s savings
Money, savings and investments that belong to your children, and are in their name, are not taken into account when assessing your Universal Credit. For example, you do not need to tell us about children’s savings accounts in their name such as Junior ISAs and Child Trust Funds.

Shelter: england.shelter.org.uk/professional_resources/legal/benefits/universal_credit/universal_credit_capital_rules
Whose capital is taken into account
Capital belonging to the claimant affects their entitlement to universal credit. This includes when the claimant is not the legal owner of property but has a beneficial interest
A couple's combined capital is taken into account when they have a joint claim for universal credit
When one member of a couple is ineligible to claim universal credit and the other person has to make a single claim, the ineligible partner's capital is included when assessing entitlement. For example, if one member of the couple is not able to claim because of the immigration and residence rules.
Capital belonging to a claimant's child is not included when assessing entitlement to universal credit.

If you are correct and child savings don't count my advise is still good-DWP will tell you so, also according to the above it only won't be counted if in an ISA or child trust fund- so that means not all savings in the name of children will be ignored.