ESA following house sale proceeds

Hi there

I have been on ESA ( with additional Disability Income Guarantee of £15.75 per week), in the Support Group, for several years. The letter I have recently received states " The payment of Employment and Support allowance is based on your National Insurance Contributions records and any additional amount the law says you need to live" . However, at the bottom of the typed calculations in the letter it states "which gives a total income-related amount of (the total benefit amount" so I am not sure if I am on ESA IR or ESA C.

Last month, due to deteriorating health, I sold my house to purchase a house nearer my relatives. However, I am having to do the house sale and purchase in two steps with a period between both transactions now of living with family to build up strength and health to enable me to house hunt and move again as soon as possible.

I informed DWP of the house sale and the fact that I now had capital over £16,000 that I will be using to purchase a new home.

The DWP have done 2 things:

a)The Disability Income Guarantee addition has been taken off my benefits due to the capital I now have.

b) Informed me by phone that if I wish for this to be re-instated, I will need to provide evidence that I intend to purchase a home within 6 months of the sale date or longer if decided reasonable. Due to my ill health, I find this extremely stressful and a further hoop to jump through with very little energy to do so.

From reading everything I can about ESA, I think that what I have been reduced to would be the ESA based on NI Contributions which I can be on even with the capital from the house sale. Would you be able to check my understanding of the situation: Am I correct in thinking the following please:

1) that I have now been moved to ESA based on NI Contributions?
2) that as I am in the support group, there is no time limit to how long I can be on this for?
3) that as I am in the support group, my NI contributions won't run out as I will have been getting credit whilst claiming ESA?
4) that if I am able to manage without the additional Disability Income Guarantee £15.75, I do not still have to show intent to purchase a property and can just stay on the reduced benefit indefinitely?

and finally
5) that once I have bought a new house, and therefore have no capital, I would then be entitled to the Disability Income Guarantee addition (if I was still in the support group - I hope to one day be well enough to leave this)?

I am sorry for so many questions, but my family and I are both worried about the stress involved in putting a case on intent to purchase together for DWP, and rushing into house move if they can both be avoided and I can remain indefinitely on the reduced benefit with the future possibility of getting the addition back if needed.

Thank you in advance for any answers and advice

Hi Ally and Welcome to the forum, you might want to have a look at the following FAQ which explain where everything is

Welcome to Benefits and Work

Yes, I think your understanding of this is correct. It looks as if you have been receiving income-related 'top ups' to which you are no longer entitled due to the money in your bank.

As long as the basis of your claim is contributory (you would have been working or on IB up to the time when you first claimed ESA) it will continue despite the money you now have.

There is no time limit for the payment of contributory ESA for those in the Support Group. NI contributions do not 'run out' as long as a claim is unbroken.

As long as you continue to be on ESA NI credits will be made towards your State Retirement
Pension.

Your basic contributory amount does not take into account any income or assets you might have (other than a private pension income).

If, in future, you use the money to buy another house you can again ask for an income-related top up to be paid. This should be an easy process as long as you have not bought a mansion with the intention of getting rid of your money so that you can claim ir ESA again!

I hope you have found this helpful. If you have further questions about this matter, p[lease reply to this message and we will do our best to help. You will find this easily in future if you bookmark/favourite it on your web browser now