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.

Access is allowed. Shifting huge amounts to keep under the capital threshold is not. When something like this is spotted during a review, it goes to a decision maker and they will go everything with a fine tooth comb and ultimately decide if it's genuine or not. It's quite obvious which kind of movement of funds is genuine and which is not.

I genuinely had no idea. I know people might use this as a way to secretly save money but for me it was a genuine honest mistake but It's so hard to prove.. I am worried sick. What do you think will happen now???

The DWP's own guidance is here:

https://assets.publishing.service.gov.uk/media/65d336b3e1bdec2be1322238/admh1.pdf

You go to the review with statements including those for your children's accounts. You explain the accounts are in their names and the money in the accounts is beneficially owned by/for your children and does not count towards your capital.

Provided you're not regularly moving money into your own account from there's which would obviously raise questions you should be fine.

If they say the money in the kids accounts is beneficially yours rather than theirs take advice from (eg) Citizens Advice and ask for a Mandatory Reconsideration.

Well I’m guessing you’re going to have to pay it back…

They aren't considered to be in her name or her money if they were opened using the children's ID and are in their names. It's normal for these accounts to still be managed via the adults online banking. It's different if the accounts were opened in the adults name and just "assigned" to the children by them personally. But that is not the case here

unless you do this and they say it’s ok…I have no idea

I would try to stay calm and just tell them the truth - that you have these accounts which contain money mostly from inheritances and gifts from relatives and see what happens then. Provide the will if requested which shows a big chunk of the money was gifted directly to them, and thus is not your money.

Nothing. Because it's considered your child's money and doesn't count towards your capital for UC.

It sounds like you have access to remove money so they would be considered savings for universal credit, rather than if they were in a trust or JISA.

You will most likely need to repay any UC you recieved the months your total savings were £16k or more, and a proportion of UC for the months your savings were between £6k and £16k.

Citizens Advice may be able to advise, as well as National Debtline if there has been an overpayment.

Do not attempt to move the money around now, anyone advising that moving it will help you is wrong.

@Gabbygirl your starting point is that it's your kid's money as per the guidance I linked above. Any body who says otherwise or that it has to be an ISA is plain wrong.

As above, unless you're dipping into it for your own use you've nothing to worry about.

I have no issues with that at all. I just want it sorted. Do you think i could be prosecuted?

I had my DCs accounts (I have 1DC) reviewed at UC review

They said as long as it's not huge amounts of my benefits then it's their money. So £50-100 from birthdays on or around my DCs birthday is fine, and then we add little bits of pocket once or twice a month £5-10 a time, there's a few thousand in there but UC discounted it.

They just say keep the statements so that it can be reviewed. Mine didn't even go to the decision maker.

Edited to add; The same applies for Christmas money, especially as they get older, relatives can give them monetary gifts.

Presumably OP would not need to show that all the money is the children’s anyway. If she has the will leaving £7.5k to the children (£2.5k each), and that amount is in each child’s individual account, that will take her below the £16k threshold anyway. That £7.5k is demonstrably not hers. So even if they do include money she has moved to that account herself, she won’t go over £16k.

The inheritance money shouldn’t be included in your assessment for UC so that is at least £7.5k which can be discounted. So seems like you don’t have anything to worry about OP.

Thank you. I am just so worried and scared. It don't help the mix of information online.

That is very reassuring and helpful, thank you so much ! I do think it all depends who you get as well. It don't seem like a one size fits all situation

I don't understand someone claiming UC and taking taxes paid by others, then putting birthday/Xmas money away in long term savings. What a luxurious position to be in! My kids' birthday and Xmas money gets spent on what they need. No nest eggs for them.

Trying ringing CAB OP, or write a message on your UC journal.

Its an honest mistake and you’ve got the funds available to repay if needed, which makes the whole thing a lot smoother.

Their nan died. I am sure they prefer she was alive.

Sorry Nrtft

We have just applied for UC as far as we are aware our children’s savings accounts have not been taken into account. UC are aware they exists as we told them we borrowed money from them to cover the last 2 months mortgage from our children’s savings. The transfers are clear on our bank accounts. They never asked us how much was in there or where the money has come from. Our DCs have go Henry’s with their own savings component that our DCs manage themselves and bank savings accounts and bonds, all historical with payments from grandparents and us. It’s clear by our own bank accounts that we haven’t put any money into the DCs accounts other than a few pounds pocket money, since our circumstances have changed.

id call and speak to who ever you normally deal with, but I think as long the accounts are clearly children’s savings then you should be fine.

This is often forgotten about when declaring capital for UC. Might be a better idea to ask grandparents to open/manage children's accounts, or their father if you live separately. Many GPs give children a bit of money when they are born and it's really unfair if it's then reckonable for UC purposes just by virtue of having the parents' names on the account.

God I need to go on benefits! Can't save a penny for myself or my kids working full time... it's a mugs games isn't it!

Is it a "problem " though (other than the misunderstanding)? I would think supporting yourself without UC comes before building up a nest egg for your kids.

Some children don't actually need anything after every single birthday and Christmas. I know mine certainly don't. I'm also not going to be using that money for necessities. Birthday and Christmas money is for treats and toys they want to buy themselves.

OP, there are so many people on this thread who are clearly just making shit up. You've also had a few people who've had this experience and reassured you that their child's savings weren't taken into account - your best best is to take everything to your review and be completely transparent, and hopefully this will be your experience too.

Lots of posters are confidently telling you you'll have to pay it all back based on nothing but their gut feeling about what "should" happen, and you're going to tie yourself in knots with worry if you keep giving them headspace. No-one can tell you for sure what the outcome will be, but there's plenty of evidence here to suggest it will be ok.