Hello Brief intro. My wife is on Contribution based ESA and PIP, with high level care and mobility.
We live on the route of HS2, and are close enough to the line for blight to hit our property, and as such, we are entitled to a £16k cash payment from HS2. They have worded all letters as that: a cash payment. No mention of compensation etc. This amount is payable to the household, therefore £8k each.
My question is this; where do we stand with the DWP and their 16k ceiling on savings? If they include what is ostensibly 'compensation' at 8k each, my wife stands to lose her ESA.
If you are only receiving Contribution Based ESA then the payment should be treated as a one-off payment of capital so your ESA(CB) will not be affected and you do not need to tell the DWP.
If you are receiving any Income Related ESA then the payment will take you above the £6000 limit so there may be deductions from your ESA(IR). If as a result of the payment your total savings and assets exceed £16.000 then your ESA(IR) will stop.
The lump sum payment does not affect PIP or CA if you claim it.