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?

‘I picked good men’ and ‘baby daddies’. What a weird set up.

I obviously went badly wrong because my babydaddy is still here 23 years later and he has a modest income. Ho hum.

Some people value more time with their children over money. If they are higher rate tax payers it might even work in their favour. Them earning a high amount doesn’t help your pension or career progression long term.

No it doesn’t .. there’s the cost of benefit administration fir a start which isn’t the same for all benefits

Many people have said for the fathers to open an isa for the children and pay into that. You haven’t addressed it? It seems the obvious solution. Them paying into an account for their children will have no recourse on you as you won’t be involved or have control of the money.

If you have enough money to be saving each week and only working part time, I think you probably don’t need UC on top.

I noted that as the best idea so far. It seems to tick all the boxes.

But it can’t be cashed out until you’re in your late 60s.

I don't need it but I'm entitled to it if I follow the rules.

I like it as a description. Would you prefer maybe "non-romantically attached co-parent"?

It works for me. I want children, I don't want a husband.

Which you are actually trying to find a way around......

The system is screwed. But the people choosing to work part time to game the system like this will be more screwed in the long run. You’re always at the mercy of welfare reforms plus you’ll be screwed in your older age if you haven’t worked decent hours for decent money

That only works if you 100% trust the two men not to take out the money when they want. Which perhaps you do.

And you want tax payers to help support them

I'm not trying to find a way around it. I'm trying to make sure I know all the rules. The weathly spend thousands on reducing their tax bill by understanding all the rules. I can't afford that so I need mumsnet advice!

Most people have tax payers support their children. You still get tax payer funded childcare if you earn 100k.

I think the benefit of our non-romantic co-parenting arrangement is that is focused on the children. There is no package of having split up in the past.

I have quite a high level of trust. But ultimately it is their money anyway.

Given that you are only working part time on minimum wage, I think it would be foolish NOT to have a pension that you are paying into. That’s future planning, not deprivation of assets.
I am older than you and a single mum. My pension took a hit in the years I worked part time and I’m scrabbling to catch up now.

The cost to society can't be quantified like that. For a start, the benefit claim costs money in addition to the rate that you receive because of the administration. Childcare does cost more money, but it also provides jobs for childcare workers. Your children receive input from people outside of the family, which might help them in the future with mixing with others. You will be less of a burden on the state in the future because you will have a higher occupational pension and less likely to rely on Pension Credit. You will be contributing taxes from your income over and above the consumer taxes such as VAT and fuel duty. You will have more disposable income to spend in shops. The list goes on.

If you don't like the system vote in some other politicians. Don't blame the little people. We just have to do want we can to get the best life for our kids.

You miss my point.I was saying its not as simple a “i claim for x but not y,therefore I save taxpayers money”

I thought it was 57 for drawing down a pension?

Yes, a penaion is not considered when working out capital limits so you can put money in there. You can put a maximum of your annual earnings into it every year (or £60k, whichever is smaller).

Putting money into your pension will also reduce your take-home pay for working out your UC award, and could mean an increase in the UC payment. It's easiest from an admin pov to pay it into your workplace pension because then they will see the pension amount on your RTI information and base your payment on the reported earnings after pension contributions. If you pay it into a SIPP then you would have to report the amount you paid manually and some UC claimants have had issues getting it processed correctly.

I would recommend reading the relevant pages on Gov.uk and the Decision Makers guide on capital - more reliable information than online forums.

https://www.gov.uk/guidance/universal-credit-and-earnings

assets.publishing.service.gov.uk/media/693ace15c72b0f8ccf33d609/adm-ch-H1.pdf

I have no influence on setting the rules. I just have to play within them. Anyway there are many threads you can complain about the rules, looks of people seem to get a kick out of sneering at the little people. This threads is a money matters thread looking at how to use the rules.