- Posts: 8
- Forum
- Members forums
- ESA, PIP and DLA Queries and Results
- What happens on ESA when savings £16,000 plus
× Members
What happens on ESA when savings £16,000 plus
- James9000
- Topic Author
- Offline
Less More
4 years 9 months ago #237984 by James9000
What happens on ESA when savings £16,000 plus was created by James9000
Hello, I was fortunate enough to receive a large ESA back payment which have taken my savings well above the £16,000 threshold. I've been told I have a year's grace in which I will continue to get benefits. Then the back payment will be counted as regular savings.
My question is what happens to one's claim when savings go above £16,000. I'm aware that I wouldn't be entitled to housing benefit or ESA but what happens when my savings go below the £16,000 threshold which they will quite quickly, when I stop getting housing benefit and ESA.
Do I have to start a completely fresh claim? Or will they reactivate my ESA. Or will I have to do make an application for universal credit. I realised I am in a very fortunate position compared to some. Thank you.
My question is what happens to one's claim when savings go above £16,000. I'm aware that I wouldn't be entitled to housing benefit or ESA but what happens when my savings go below the £16,000 threshold which they will quite quickly, when I stop getting housing benefit and ESA.
Do I have to start a completely fresh claim? Or will they reactivate my ESA. Or will I have to do make an application for universal credit. I realised I am in a very fortunate position compared to some. Thank you.
Please Log in or Create an account to join the conversation.
- Gary
- Offline
Less More
- Posts: 7612
4 years 9 months ago #237993 by Gary
Nothing on this board constitutes legal advice - always consult a professional about specific problems
Replied by Gary on topic What happens on ESA when savings £16,000 plus
Hi James9000
It depends whether or not you are on Income based ESA or Contribution based ESA. The is a 'lower capital limit' and an 'upper capital limit'. You cannot get any means tested benefit if your capital is above the upper limit of £16,000.
Arrears of specified benefits and other payments are ignored for 52 weeks after they are received by you; or longer in some cases of official error.
ESA Sch 9 para 11 ESA Regs, HB Sch 6 para 9 HB Regs
Unfortunate if you stop claiming IR ESA then when your income goes below the upper capital limit, you will have to apply for UC.
You may want to think about purchasing equipment to help you with your disabilities before the year is up to reduce your capital below £16,000, that way you can stay on ESA and HB, although you may be affected by tariff income if your savings are above £6,000.
Gary
It depends whether or not you are on Income based ESA or Contribution based ESA. The is a 'lower capital limit' and an 'upper capital limit'. You cannot get any means tested benefit if your capital is above the upper limit of £16,000.
Arrears of specified benefits and other payments are ignored for 52 weeks after they are received by you; or longer in some cases of official error.
ESA Sch 9 para 11 ESA Regs, HB Sch 6 para 9 HB Regs
Unfortunate if you stop claiming IR ESA then when your income goes below the upper capital limit, you will have to apply for UC.
You may want to think about purchasing equipment to help you with your disabilities before the year is up to reduce your capital below £16,000, that way you can stay on ESA and HB, although you may be affected by tariff income if your savings are above £6,000.
Gary
Nothing on this board constitutes legal advice - always consult a professional about specific problems
The following user(s) said Thank You: James9000
Please Log in or Create an account to join the conversation.
- James9000
- Topic Author
- Offline
Less More
- Posts: 8
4 years 9 months ago #238052 by James9000
Replied by James9000 on topic What happens on ESA when savings £16,000 plus
Hi Gary thank you very much for your detailed reply, I appreciate it.
I know you are expert in these matters but full disclosure here, I've heard slightly different information, that one's claim does not end if the savings rise above 16,000 limit, it's just that you don't get paid any money. And that when one savings go down below that limit your claim is reactivated, this could be complete bunk
I read it somewhere and it seemed authoritative but I cannot remember where. What I'm trying to say politely is are you absolutely sure, apologies in advance.
I know you are expert in these matters but full disclosure here, I've heard slightly different information, that one's claim does not end if the savings rise above 16,000 limit, it's just that you don't get paid any money. And that when one savings go down below that limit your claim is reactivated, this could be complete bunk
I read it somewhere and it seemed authoritative but I cannot remember where. What I'm trying to say politely is are you absolutely sure, apologies in advance.
Please Log in or Create an account to join the conversation.
- Gordon
- Offline
Less More
- Posts: 51293
4 years 9 months ago #238054 by Gordon
Nothing on this board constitutes legal advice - always consult a professional about specific problems
Replied by Gordon on topic What happens on ESA when savings £16,000 plus
James
It's impossible to give you a definitive answer without more information.
What ESA are you receiving?
- Contribution Based only
- ESA(CB) with an Income Related top-up
- ESA(IR) only
What was the back payment for?
- An increased award
- You were transferred from another benefit and the DWP failed to pay you ESA(IR) at that time.
Gordon
It's impossible to give you a definitive answer without more information.
What ESA are you receiving?
- Contribution Based only
- ESA(CB) with an Income Related top-up
- ESA(IR) only
What was the back payment for?
- An increased award
- You were transferred from another benefit and the DWP failed to pay you ESA(IR) at that time.
Gordon
Nothing on this board constitutes legal advice - always consult a professional about specific problems
Please Log in or Create an account to join the conversation.
- James9000
- Topic Author
- Offline
Less More
- Posts: 8
4 years 8 months ago #238377 by James9000
Replied by James9000 on topic What happens on ESA when savings £16,000 plus
Hi Gordon, very kind of you to reply. Forgive me, I didn't give much details. I'm actually on income -related ESA, I've been on it for a while. The lump sum I've received is from the recent ESA court case.
I'm in no condition to complain and I certainly don't have any control over the situation I would prefer not to to be on universal credit because I dread the application process. It's no big deal but I just would like to know where I stand.
Many thanks.
I'm in no condition to complain and I certainly don't have any control over the situation I would prefer not to to be on universal credit because I dread the application process. It's no big deal but I just would like to know where I stand.
Many thanks.
Please Log in or Create an account to join the conversation.
- Gordon
- Offline
Less More
- Posts: 51293
4 years 8 months ago #238410 by Gordon
Nothing on this board constitutes legal advice - always consult a professional about specific problems
Replied by Gordon on topic What happens on ESA when savings £16,000 plus
James
Were you transferred from Incapacity Benefit to ESA?
Has your claim been continuous since then?
If you were and are then your letter should say that the money will be disregarded for the life of your ESA claim.
Gordon
Were you transferred from Incapacity Benefit to ESA?
Has your claim been continuous since then?
If you were and are then your letter should say that the money will be disregarded for the life of your ESA claim.
Gordon
Nothing on this board constitutes legal advice - always consult a professional about specific problems
Please Log in or Create an account to join the conversation.
Moderators: Gordon, Gary, BIS, Catherine, Wendy, Kelly, greekqueen, peter, Katherine, Super User, jimmck, Chris