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Income Related ESA & Savings.

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4 years 1 week ago #258522 by JJ
Income Related ESA & Savings. was created by JJ
Hi Team
I understand that the Savings threshold for IR ESA claimants is £16,000 before eligibility is lost. I also understand the tariffed amounts between £6,000 & £16,000. But I am trying to decipher though if the £16,000 is as an annual amount or if the claimant receives staggered amounts throughout a financial year that had to be used for essential items, then if this amount, if added up, would go above £16,000, but this would not have been over the threshold in the bank account due to the essential ongoing spending.
Sorry if the question is not very clear, but basically I am trying to find out if the criteria looks at the level of savings not going above £16,000 at any one time, or if the claimant is generally only allowed £16,000 over a whole year.
Thank you for any advice you can give.

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4 years 1 week ago #258523 by Gary
Replied by Gary on topic Income Related ESA & Savings.
Hi JJ

Entitlement stops as soon as you go over £16,000, it is not averaged out over a year.

www.entitledto.co.uk/help/savings

Gary

Nothing on this board constitutes legal advice - always consult a professional about specific problems

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4 years 1 week ago #258531 by JJ
Replied by JJ on topic Income Related ESA & Savings.
Thank you Gary
I don't really understand the answer sorry.
So if someone, for example, had £14,000 & had to spend say £2,000 on white goods, then in the same year had another £3,000 as a gift from a will, the £3,000 then would not be considered as taking them over the £16,000 limit.? (ie: £14,000 + £3,000).

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4 years 6 days ago #258538 by freefee
Replied by freefee on topic Income Related ESA & Savings.
are there savings limits if you are in the support group, but it is contribution based ?

Your (or your partner's) income and savings will generally not affect how much contribution-based ESA you're paid. ... There's no time limit if you're in the support group or if you're getting income-related ESA. This may carry on beyond 12 months, provided you still meet the qualifying criteria.24 Mar 2021

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4 years 6 days ago #258569 by Gary
Replied by Gary on topic Income Related ESA & Savings.
Hi JJ

If you had £14,000 and spent £2,000 then you would have £12,000, if you then received another £3,000 you would then have £15,000, not over the limit so you would still be eligible to continue to receiving any IR benefits.

If you have £14,000 and receive £3,000 you would then have £17,000 which would make you ineligible to receive any IR benefits.

Gary

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4 years 6 days ago #258570 by Gary
Replied by Gary on topic Income Related ESA & Savings.
Hi freefee

The limits only apply for Income based benefits such as IR ESA, UC, HB. If you are in receipt of a contribution based benefit such as CB ESA then your savings are not taken into account.

Gary

Nothing on this board constitutes legal advice - always consult a professional about specific problems
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