How does savings affect ESA

My friend is on income related ESA and has a new partner.

They would like to move in together. He works, she is in the support group if she has paid enough national insurance would she be transferred to contribution based ESA.

How much savings are you allowed to have and if it is above that amount does it mean you don't get ESA at all, if the money is all his savings?

Hi Suzy,

If your friend is on IB ESR only then it is likely that she has no entitlement to Contributory, otherwise she would be on C with an IB top-up.

Once your friend and her partner move in together, his income and savings would be taken into account and counted as hers. If he has more than £6000, this would affect her ESA and payments would be reduced proportionally, £16000 and above would wipe out any payments completely. In addition, if the partner earns too much or works for more than 24 hours, ESA payments would cease.

24 hour work rule for ESA(IR)

Asset rule for ESA(IR)

If your friend is onC ESA with an IB top-up, the IB could be wiped out but the C payments would continue - whatever the savings, income or working hours of the partner.