Most banks offer cashback or additional interest rates for customers having/switching current accounts with them. Often these accounts require a minimum monthly pay-in. I have read personal finance websites pointing out that say with accounts A and B, one can set-up standing order of say 1000 GBP from A to B and a standing order from B to A the next day. This way the bank requirements will be satisfied, although the net credit in the account stays the same. My understanding is that this is perfectly legal and in no way an act of fraud. (full description here)
Now, I have a sister who is currently looking for work and is claiming job seekers' allowance. My understanding is that such allowance are only awarded to people making less than a certain level of "income".
My question is, if I were to set up the standing order scenario outlined above, with account A being my account and B being her account, is she considered to have an income of 1000 GBP per month and spending it by giving it to me? Will this be considered a short-time loan? All in all, will this potentially affect her eligibility for receiving job seeker's allowance.