ESA reduced as loan being treated as income. Help!

Hi,

I am on ESA support group, I suffer from ptsd, depression, severe ADD and various other problems. This month the dwp did a spot check on me and I had to be interviewed. Before they came I checked up and realised I could be in trouble. Since August my dad has loaned me £6.000 for repairs to the house, and also for the shortfall in the mortgage that the dwp do not pay.

I have PTSD and was burgled the year before, I have no front gate, my property is open access. I also have dangerously slippy flooring which I broke a rib on...basically all the repairs are necessary. My dad started paying the money in August as I had suffered 2 bereavements and was in a terrible state, he wanted to spur me on but I did not have the motivation so the money just sat there. I didn't realise I was supposed to inform dwp if my account went over £6,000, to be honest they were the last thing on my mind. When I realised this I called them very distressed and explained, as in the letter they were demanding to see 6 months worth of bank statements.

I found something on line that stated that loans for essential house repairs were NOT to be counted as income, so I thought I would be ok.
www.entitledto.co.uk/help/savings
My statement made it clear that the only reason the money had been in the account so long is because of the effect of the bereavements.
I had quotes from the firms concerned, a signed statement from my dad, and a friend to support me, the woman who came was very nice and I honestly felt if it was up to her I would be ok. However I've now had a decision that they have counted it as income and will be stopping £32 a month until further notice. I am planning to ask them to look at it again but I am terrified they will try to drag it out to a tribunal, I was so anxious at the last one for my DLA (which I won) that I self harmed and had panic attacks.

I feel they are picking on the most vulnerable people who they believe cannot fight back. How can I word my letter so they will overturn the decision? I am panicking now just at the thought of the tribunal. I am going to pay my dad back as much of the money as I can afford now. I feel sick that they can treat people like this.

I hope someone can advise me.

hi, my account was around £2,000 as I was awarded a back payment of dla a couple of years ago and tried to keep some back. I will at some point have to have a bridge replaced which they will not do on NHS, and I can't wear a plate. (the bridge is 13 years old and they expected it to last less than 10). My dad's loan pushed it up to just above £8,000. I have no actual 'savings' apart from the money I kept back for the dental.
hope that clarifies things.

Also in the letter I was not given any explanation of how they came to the decision, just that they were taking the money off as it was 'savings'.

My main problem is that I don't understand why they are treating it as savings, when it says a loan for home improvements should not be treated as savings/income. I have a signed letter from my dad saying it is a loan for home improvements.
I'm having some of the work done now but the outside work needs to wait until the weather is better.

lianna wrote: My main problem is that I don't understand why they are treating it as savings, when it says a loan for home improvements should not be treated as savings/income. I have a signed letter from my dad saying it is a loan for home improvements.
I'm having some of the work done now but the outside work needs to wait until the weather is better.

Hi l,

I can only reiterate what Gordon has already stated.

You should of course use any such letters to challenge any adverse decision, and as previously advised try and use the monies for the improvements ASAP.

bro58