- Children's savings held in accounts that belong to the child — including Junior ISAs, Child Trust Funds and savings accounts in the child's name — are generally not counted as the parent's capital for Universal Credit.
- The key principle is that the money belongs to the child, not the parent. If the parent has no legal right to access the funds (which is typically the case for Junior ISAs and CTFs until the child turns 18), those savings are not assessed as the parent's capital.
Junior ISAs and Child Trust Funds
Junior ISAs and Child Trust Funds are locked until the child turns 18. Parents cannot withdraw funds before then (with very limited exceptions for terminal illness). Because the funds are inaccessible to the parent, DWP does not include them in the parent's capital assessment.
This makes Junior ISAs a genuinely useful vehicle for families on UC who want to save for their children's futures without those savings reducing their own UC award.
Children's savings accounts in the parent's name
If you hold savings in an account in your own name that you describe as 'for the children', DWP may still count it as your capital because you legally control it and can access it at any time. The key is whether the account legally belongs to the child.
To ensure children's savings are disregarded, they should be held in accounts that are legally the child's (Junior ISA, CTF, savings account in the child's name). If you have been holding child savings in your own account and need to protect them, speaking to a financial adviser about moving them appropriately is worth considering.