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Permitted use of savings
- jasonh
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7 years 3 weeks ago #182193 by jasonh
Permitted use of savings was created by jasonh
Hi,
I have the client who in December was successfully awarded ESA SG with a DS1500.
He has now been awarded a £36,000 employment mediation (Not ET) payment.
My understanding is that ESA SG is always income related due to the premiums and therefore should declare this as savings. He would have been eligible for CB
Is there any exception to saving rule when he may have to pay a shortfall of £500 housing benefit?
Thank you!
I have the client who in December was successfully awarded ESA SG with a DS1500.
He has now been awarded a £36,000 employment mediation (Not ET) payment.
My understanding is that ESA SG is always income related due to the premiums and therefore should declare this as savings. He would have been eligible for CB
Is there any exception to saving rule when he may have to pay a shortfall of £500 housing benefit?
Thank you!
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- Gordon
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7 years 3 weeks ago #182216 by Gordon
The SG is not always income related, it will depend entirely on the claimants personal circumstances as to whether they qualify or not. Even if they do then the ESA(IR) is effectively paid as a top-up to their ESA(CB).
However. Housing Benefit is calculated separately although the rules are similar to ESA, so it doesn't really matter what ESA they are receiving.
If the payment is classed as compensation then then the DWP may try to recover some of the ESA already paid from the lump sum.
If the payment is placed into a suitable trust then it may be possible to avoid impact to their existing benefits.
I'm afraid these latter matter are not something that we can assist with on the forum.
Gordon
Nothing on this board constitutes legal advice - always consult a professional about specific problems
Replied by Gordon on topic Permitted use of savings
jasonh wrote: Hi,
I have the client who in December was successfully awarded ESA SG with a DS1500.
He has now been awarded a £36,000 employment mediation (Not ET) payment.
My understanding is that ESA SG is always income related due to the premiums and therefore should declare this as savings. He would have been eligible for CB
Is there any exception to saving rule when he may have to pay a shortfall of £500 housing benefit?
Thank you!
The SG is not always income related, it will depend entirely on the claimants personal circumstances as to whether they qualify or not. Even if they do then the ESA(IR) is effectively paid as a top-up to their ESA(CB).
However. Housing Benefit is calculated separately although the rules are similar to ESA, so it doesn't really matter what ESA they are receiving.
If the payment is classed as compensation then then the DWP may try to recover some of the ESA already paid from the lump sum.
If the payment is placed into a suitable trust then it may be possible to avoid impact to their existing benefits.
I'm afraid these latter matter are not something that we can assist with on the forum.
Gordon
Nothing on this board constitutes legal advice - always consult a professional about specific problems
The following user(s) said Thank You: jasonh
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