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?

If UC see lots of cash being taken out when they review statements, then can and will ask questions.

Understood, but maybe the dad who wants to pay extra could give it in cash instead

Yeah .it doesn’t work like that.One benefit not claimed doesn’t offset another claimed

ANd you should be fined for using the term “babbydaddies” 😀

So it’s ok to deliberately choose to work the ‘required hours’ to get UC
you are correct, the system is all wrong

So OP doesn’t put it in the bank - problem solved.

The fathers could put money into your childrens junior sipps if you don’t need the cash…

How about work more hours and claim less benefits? The limits are there for a reason, same for all. My dsd was penalised and she can’t work (very high needs)

But she wants to save it and long term saving of cash isn’t feasible. Money laundering regs would stop her from using a large lump sum of cash on a house for example. I don’t know enough about UC to know if the kids can have it in a savings acct, they probably would know that the OP could access that though.

Child maintenance paid in cash, spend it on gold? Bit risky but jewellery is not considered an asset and likely would retain its value for when you’re no longer in receipt of UC.

They still ask about cash. Cash is included in capital, not mentioning a large amount of cash deliberately is deprivation of capital.

Buy gold. You don’t pay CGT on the sale of it.

(put in your pension).

I know they do. But there’s no way they could prove OP has the money unless she tells them.

I see this regularly on here. People think it's fine to fudge their very high income to claim a benefit but woe betide the universal credit claimant who who manages to end up with a spare fiver.

Not quite true. Child maintenance isn't counted as income. However, any child maintenance that is not spent in the assessment period after it is received is capital and is therefore counted.

If @Thirdchildjoy receives £4000 child maintenance in February and spends it by March, it doesn't count. If she doesn't spend it all in February or March, then in April whatever is left will be counted as capital.

So, say there is £1000 left in January, £1000 in February, £1000 in March, £1000 in April, £1000 in May, £1000 in June, £1000 in July, etc., in August the DWP would start making deductions of £4.35 for each £250 that is over the £6000 lower limit for capital.

I think they mean the CMS.

Whilst ‘gaming the system’ they are not working the minimum possible hours for top ups and will be paying the tax to support people like OP

It kinda of does through doesn't it? If I worked more I would lose my benefits amounts but then would need to claim childcare. Childcare is way more expensive than the benefits.

No their gaming the system to get child benefit, they probably claim free childcare as well. We all just play by the rules. My baby daddies pay a lot in tax.

Putting it into a pension is a good idea. After all, you're going to need it when you're older and your DC are grown up so you don't have UC and your 'baby daddies' providing you with an income.

Because supporting yourself with a real job, instead of relying on your DCs fathers or the state, doesn't seem to figure in your life plans.

That would be fine. They need to open Junior ISAs themselves. AJBELL is a good reputable provider recommend by which. They can open Junior Isa, put up to 9k a year and the child can access this money once they turn 18. AJBELL also provides the guidance what these money could be invested into. Obviously if the children don't know ISAs exist you can delay telling them if there's a worry they might squander the money

I also think if you put your money into your pension it should be ok too. AJBELL also h
Runs self-invested pension accounts called SIPP.

Alternatively, if you are contributing to your workplace pension you should you be able to ask your employer to put more money into your account before it's even paid too you. It's called "topping up" your pension. At current rules you can access a quarter of your pension once you turn 55

We have to do something about the culture in this country where women are ok with being financially reliant on others.
Bad for all of us, including the women, in the long run.

Baby Daddies FFS

Baby daddies, that is so sweet.🙄

The Labour government discourage people providing for themselves generally. Starmer has said that the Labour party is for working people and he has defined working people as those who don't save money.

They are looking at means testing the state pension in future so there is less incentive to save and have also reduced some of the tax benefits from savings for a pension.

It isn't a money matters question. You're specifically asking how to avoid the UC capital and savings rules. If you have surplus CM that you can't realistically use for your children, and it builds up, the capital rules should be applied to you like they are to everyone else. Over £6,000 of savings your UC will be reduced by £4.35 per £250 over £6k. That is fair if you have those accumulated savings. You will obviously not be struggling financially if your CM is so generous. Over £16k you have no entitlement to UC. Why should you avoid the rules? The regular review system for UC will mean you have to declare any savings. If they detect deliberate deprivation of capital it will be flagged. Whilst you can legitimately put certain amounts from CM into savings for the children there are rules regarding this too. Lump sums you can instantly access yourself will be brought into question. As a benefits specialist who spends their working hours fighting for people in real need your post has really got my back up, tbh.

Your children's father could start pensions for your children.