ESA, Savings, Voluntary National Insurance Payment

Hi,

I am 37 years old and I have always lived with my parents. Since the beginning of 2020, I have been waiting for an Autism diagnosis assessment.

I solely receive Income Related ESA at £261.30 every two weeks. I have been on Income Related ESA constantly since 2016. My bank statements show my savings slowly increasing, consistent spending and weekly cash withdrawals.

During the pandemic period last year, my depression and anxiety increased and money leaving my bank account dropped drastically. I was not spending or withdrawing cash as I was not leaving the house. My parents were paying for everything and in one month no money left my account at all.

At the end of last year I began leaving the house and so withdrew large cash sums equalling the same amount I would have withdrawn had been doing so weekly as before, in order to pay back my parents. What I hadn’t realised until recently was that during the period of not spending, my savings had reached £16,700 by September 2020. They are currently around £15,500.

Because my savings exceeded £16000 what exactly will happen? I understand that I have to now inform the DWP. Will my ESA payments stop completely? Will I be removed from the system all together meaning I will have to start from scratch by reapplying and going through the entire interview process once again?

Also, due to long-term unemployment, I have gaps in my National Insurance contributions. I understand this will effect my pension so I will seek advice to rectify this. Will using my savings to make voluntary National Insurance payments be seen as an appropriate use of money?


Many thanks in advance.

Mark