How to stay to under capital limit

[Thirdchildjoy]

I need some advice on how no to breach the UC capital limit.

I work the required hours to quality for UC within my mates business. I get minimum wage but it is easy work. I get really good maintenance from both my babydaddies. One want to give us a bit more money but I'm strugging with the saving limit.

Does anyone know if I put the money into a pension whether it would be seen as deprivation of capital? I kind of see as the same as those people who put money into pensions to stop losing child benefit.

Are there any other ways to "invest" which wouldn't impact my UC money?

Well the maintenance is for your children, isn't it? Are you saying you don't need the amount you are being given, so you're building up excess?

In the mattress?
I mean really the limit is there for a reason isn’t it?

They know that they are helping me to know work the rest of the week. They both would rather pay me more than have their kids in childcare all week. I picked good men, they aren't poor.

But I need to save some of the money. It may well get used for the kids in the future.

If they were to pay the money straight into ISA in the kids names would that be ok maybe?

Why don’t they open an account for their children then they can pay whatever they like into it themselves. They will have control over it until your children are old enough so it will have nothing to do with you or your finances.

Also, if they really are good men, and don’t want their children in childcare, they could drop their hours at work and look after their children and you could up your hours and have the benefit of more pension when you get older.

I don't that is allowed. I only want to what is within the rules.

That would be loss - loss though. I would earn less than they do working, and I wouldn't get to spend as much time with the kids. Plus two men would need to stop working version just me. The tax payer would loss 2 lots of high rate tax in return for my minimum wage tax so would down overall quite a bit.

I can only think of starting a SIPP pension or if you have a mortgage you could overpay on the mortgage.

You want people to help you game the system so you can take more than you are entitled to?

I don't think I can help you with that.

The system is unfair though. Assets are OK, but cash is not.

This is money matters. There are loads of posts on how to save money by staying under thresholds. I'm just doing the same. I only looking to follow the rules to maximise my income. If I worked more the government would pay for the childcare which is would be more expensive. So I save the tax payer money.

putting money into a pension is not seen as deprivation of assets.

Thank you!

people earning over £100k a year "game the system" and put income into pensions so they can still claim benefits, as if they earn over £100k a year they lose their child care benefits, there personal allowance tax threshold.

Pensions are a way of providing for yourself in old age and that s something all gov. promote thus its not seen as deprivation of assets

Money in junior ISAs for the kids doesn’t count and is totally above board. So they could give extra to the children directly that way.

and to a previous poster, yes the system is unfair. Someone with a million pound house would not be over the limit but someone carefully saving for a house deposit might well be.

I know that overpaying your council property rent is also not seen as deprivation of assets.

you can't overpay on private rental as I do believe its now forbidden but not for benefit reasons - you would need to check that out with an estate agent.

If they were to pay the money straight into ISA in the kids names would that be ok maybe?

yes, as long as they are paying you the required amount of maintenance set out by the child benefit agency

That not entirely correct. UC will look at who the beneficial owner of the money is. If it’s money from relatives for birthdays or Pocket Money amounts from parents that that’s fine. But if the parents are deliberately putting amounts of money into the account to avoid capital limits which is what OP seems like she wants to do then that is not allowed. And saving child maintenance would be seen as her money.

as long as its not a lump sum from your savings going into pension - if its from your wages and goes in monthly and you were to increase your pension contributions

if you remove a lump sum from your savings then UC can ask what you did with it - if ever you remove a lump sum then keep all records. Say you purchased a car for getting around, or went on holiday, that is ok but keep all the payments and evidence

if you gave money in a lump sum from your savings to the children - thats not ok and would be seen as deprivation of assets

Why would I do that! I don't want to pay the landlord more....

Child benefit agency?

It's not gaming though is it? Child maintenance isn't counted as income at all so people can continue to get a load of benefits and CM too.
It is not against the rules to pay into a pension but I think op would need to let them know so that they don't ask where the money is going at her next review. Hiding money under the mattress or giving large amounts to family to keep for her would be gaming the system.

Starting up a SIPP may not be feasible because the money is locked away until you’re 55. Cash is your best option.

Is it too obvious to just keep it as cash?