I'm currently living on ESA with my wife who receives PIP Enhanced. We live in a 3 bedroom bungalow council property, which was 2 bed before we built an extension with an extra bedroom and wet/shower room. We intended on living here but owing to my wife's disabilities we have to move to a more suited property for her needs. The extension cost £38,000 25 years ago and was fully approved by all necessary government departments. I have been told that when I hand the property back to the council I can be reimbursed for the extension, how much I'm not sure atm. My query is, if I receive more than £6,000 can I use the excess amount to adapt or extend my new home without my ESA been effected.
It is certainly possible that the DWP will disregard the money but this is at the discretion of a Decision Maker and you will likely need to show evidence of your plans to dispose of the money, also the disregard may only be for a fixed time, six months is a usual period.
I strongly recommend that you get face-to-face advice