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.

Your understanding is entirely wrong. Children's savings that are in accounts in their names (as OP's DC's are) are not taken into consideration for their parents' UC claims.

Oh dear God - let me try again ...
"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."
Do you understand the meaning of the term "For example"? This is not an exhaustive list - junior ISAs and CTF are EXAMPLES of children's savings accounts which are disregarded by the DWP when calculating a parent's UC entitlement, but ALL children's savings accounts, held in their names, are disregarded.

Take your head out of your arse.

Ah, an insult - what a surprise (not) - the last resort of the person who doesn't know what they're talking about. So you don't know what "for example" means then. Sigh. 🙄
Don't post your BS opinion as fact when it couldn't be further from that.

But as household they've got over double what the nan left them in savings! Why are people who are working and earning enough to put money away in savings, taking tax payers money! This isn't the first thread I've seen on here where people with a lot of money in savings are trying to juggle it with claiming benefits! Funny isn't it how people without kids can forget ever getting help from the system in a bad situation but if you've got kids you can claim money you don't even need!

It's one hell of a loophole for people to exploit though isn't it! Why does somebody who works and has enough left every month to put savings away need tax payers money! Why play such stupid games for what is more than what she needs. Benefits shouldn't make people better off than people who don't claim!

Surely it must count as everyone would just put it in their child’s name and then not declare it??

I am sorry but you are deluded. You included your kids on the UC claim whilst they had all this money sitting in their accounts. You should have used that money to live and not get UC. I feel sick to my stomach when I read things like this on MN.

I should live on my children's inheritance? All 7.5k of it. If it was hundreds of thousands it would be a different situation.

They are named on the will. On the will it states I had 6 months to put their money into a savings account in their individual names. 2.5k each

Their Christmas and birthday money is their money which they get instead of presents.

Their savings wouldn’t even cover my rent for a year, I think you need a reality check.

I can just imagine the type of person you are.
You seem very sad and bitter. What a sad life you must have. You are the deluded one 😊

Thank you for being so kind. People on here can make you feel awful about yourself. It’s nice to see kind people are also on here

@sinned89We both work too and our two DC (7 and 4) don’t have a penny in savings. We can’t afford it.

You are one of the reasons for which people like me (deluded!!!) who work hard, have to pay more taxes, love. No worries, you will get a reality check when they check your kids bank statements.

https://www.gov.uk/guidance/universal-credit-money-savings-and-investments#childrens-savings. If the money is theres and youre only on there as theyre under 18 they dont include that. The review may want evidence to confirm they are child's accounts but i think youll be fine

But there must be some scrutiny: it would be madness to permit people to have hundreds of thousands in kids’ accounts whilst being able to claim uc, free school meals etc etc and possibly have rent and council tax paid and so on.

It reminds me of Prince Harry whining that Pa had cut him orrrf, but no he didn’t count his £30m inheritance because he wanted to pass that on to his kids.

But if one of their grand-parents died and left them each £2.5k in their will then they could have savings. And if relatives gave them money, instead of presents, for Christmas and birthdays, they could have savings. And if you gave them each £2pw pocket money, then they could have savings. These things explain why OP's DC have savings.

Of course there's scrutiny, but the rules are clear: money held in children's bank accounts in their names is not taken into consideration when calculating their parents' entitlement to UC. The amount of money is irrelevant (OP's DC's grand-parent could have left them £100k each instead of £2.5k each) but the source of the money is. OP has evidence (via the grand-parent's will) that the money was left directly to her DC and OP opened savings accounts in each of her DC's names to pay it into, so there is no issue. If the money had been left to OP and she'd chosen to distribute it amongst her three children's savings accounts then that would be an issue as it would likely be regarded as deprivation of assets and taken into account in calculating her UC entitlement, but that is not the case here. OP has done nothing wrong.

No she won't. She hasn't done anything wrong. Money in children's savings accounts in their name are not taken into consideration when calculating a parent's entitlement to UC.
OP also works and pays taxes - just as 40% of people in receipt of UC do.

OP also works and pays taxes - she's worked since her eldest was 7 months old. 40% of people claiming UC also work.

No, because that would be deprivation of assets and would be clearly identifiable by the DWP as such (they'd just follow the money trail). OP has a copy of her grand-parent's will showing that they left £2.5k to each of OP's children - it has never been OP's money.

People will just do all sorts to continue to maximise benefits. there are lots of loopholes to do this like people can pay large amounts into private pensions to reduce net pay to mean they can claim or pay off their mortgage with an inheritance and still continue to claim benefits. these are all completely allowed.

Hello OP. I'm a welfare benefits adviser, I won't give full advice on here as it wouldn't be fair to you but can I suggest you contact a local advice service such as citizens advice who will be able to help you with this and how DWP will apply the savings and capital rules? It will give you a positive plan and reduce the what ifs and confusion of looking up info online. I'm sure you did nothing deliberate- you may have made a mistake at some point in this - although from what I have read on the face of it I don't actually think there is going to be a major issue- but that does not mean its not resolvable. Good luck.

As already pointed out the rules are crystal clear that children's savings are their money and don't count as capital for the purposes of a parent's UC claim.

If people don't like that and think kids' Xmas money should go towards the rent then that's their point of view and they're entitled to it but that's not how the system works

OP has got admin nailed with accounts clearly in the children's names. Unless she's drawing frequently/regularly for reasons not evidently for kids' benefit she will be fine.

She works. It isn't the OPs issue that you can't save.

Perhaps you don't understand how the law works? If a child is left an inheritance then the money belongs to them. A parent taking it to cover household expenses and day to day living costs would be literally stealing.

I hope you get clarity OP and a straight answer soon from UC, because there's a lot of conflicting opinions and advice here.