Hi

I am on ESA and PIP. My savings have just gone over the £6000 threshold in the last couple of months.

Is it best to phone DWP or should I write to them please?

This is causing me great anxiety as I feel like I have done something wrong. I am very thrifty so hardly spend any money preferring to save it as it makes me feel safe to know it is in the bank. I am a very insecure person with lots of struggles with mental health searching for some sort of security.

Please advise-thank you.

If you have saving over £6,000 then the amount that you get starts to go down until you reach £16,000 whereby you will not receive any benefit.

Your income and savings

Your income may affect your income-related or contribution-based ESA. Income can include:

you and your partner’s income

savings over £6,000

pension income

You won’t qualify for income-related ESA if you have savings over £16,000.

https://www.gov.uk/employment-support-allowance/eligibility

Andy

Thanks Andy.

Should I phone DWP or just send them a letter?

Phone call will suffice.......but could you not spend and treat yourself.....new furniture or UHD TV ?

Phone call will suffice.......but could you not spend and treat yourself.....new furniture or UHD TV ?

Thanks again.

I am concerned that at a later date they might ask why I spent it-dispersal of funds or something. Just don't know what is allowed and whats not.

They have no control on your spending nor is it any of their business...as along as your below the threshold.

PIP is given for you to spend on whatever will help YOU. You may need to replace your car so that you can get out and about, or spend money on taxi's. You may want to get some help in to clean your house for you or look after your garden. Have a new bathroom fitted to make your life easier. You may need to buy a new bed, TV, cooker, washing machine etc. I would take out £500 each time you are getting near the £6,000 so that you have cash available to be able to treat yourself whenever you want to.

They have no control on your spending nor is it any of their business...as along as your below the threshold.

Kind of. I mean, obviously they can't stop you spending your own money as you see fit, but there is potentially an issue of Deprivation of Capital to consider. Basically, a claimant has deprived themselves of capital if they knowingly spend money on non-essential items with the intention of securing or increasing benefit entitlement. If the DWP decides that this applies, they will treat you as if you still have the money when working out your payments.

Each case is treated on its merits, so it's not possible to give a comprehensive list of what is or isn't acceptable. Generally speaking repairs or replacements for old cars, furniture or household repairs would be OK. Paying off overdue debt is also OK, but probably not paying debt off early.

Deprivation is a consideration for ESA only, PIP is not affected by capital at all. If the capital is a result of benefit payments being saved, it can be disregarded for 52 weeks.

 

Deprivation is a consideration for ESA only, PIP is not affected by capital at all. If the capital is a result of benefit payments being saved, it can be disregarded for 52 weeks.

Thanks for the replies.

The money is from benefit payments being saved. Does that mean I can save it? Sorry a little confused what you mean.

Going on the above that would depend if you have saved it from your ESA or your PIP......do you save separately:-)

Yes, sorry - my last sentence wasn't very clear. They are two separate ideas.

PIP is not means tested and does not take capital into account. So you can have any amount of capital, from any source, and do whatever you want with it and your PIP payments will not be affected.

Now for ESA, that's where deprivation comes into play, assuming your ESA is Income Related. If the money you have saved is from benefits (of any type) then the DWP will ignore it for 52 weeks after it is paid to you. In other words, they won't start reducing your benefit payments based on it until you've had it for a year. Edit: This part is not correct: see my post below.

Sorry, disregard that last part of my post. As far as I can see from the DMG it is only arrears of benefit that are disregarded. So if your savings have gone over £6000 you would need to declare this and deprivation could be an issue if you spend the money with the intention of getting yourself under the limit.

One other thing we need to be clear about: deprivation is not fraud or any other sort of crime. It's just something that affects entitlement.

Thanks.

So does that mean for now I don't need to inform them I have gone over the threshold as it has only been a couple of months?

Sorry, disregard that last part of my post. As far as I can see from the DMG it is only arrears of benefit that are disregarded. So if your savings have gone over £6000 you would need to declare this and deprivation could be an issue if you spend the money with the intention of getting yourself under the limit.

 

One other thing we need to be clear about: deprivation is not fraud or any other sort of crime. It's just something that affects entitlement.

Oh ok thanks again.

Yes, sorry about the mistake. You should tell them ASAP. If you're worried about it, bear in mind that the sooner they find out the better for you. You'll have less stress about the situation and any overpayment will be minimised.

Thanks for the clarification antone

I think what this thread shows is it is better to keep below threshold if only by a pound and spend without worry, rather than go above the threshold and face a potential headache.

Depending on your area, you may be switched to universal credit if you do report a change.

Depending on your area, you may be switched to universal credit if you do report a change.

I thought they would just adjust my payments accordingly.

how about some new shoes or a weekend away somewhere. All that is allowable. If your only income is benefits of one sort or anothe rthye ahve calculated what is the minimum you need to live on so stop scrimping and saving if that means going without what others would consider necessities. A nice hair cut once in a while or a meal out.

I thought they would just adjust my payments accordingly.

Not now. Some areas are universal credit only, which means if you report a change, you'll be moved over. And some people are finding they're now worse off.

Better to just spend some money.....stop saving and keep your head down

Far easier

Why would you wish to keep savings in a bank account, as far as I'm concerned you'd be better off with it below your mattress as interest is miniscule on savings accounts.

Why would you wish to keep savings in a bank account, as far as I'm concerned you'd be better off with it below your mattress as interest is miniscule on savings accounts.

Don't you worry about burglars?

I never have trusted banks Kaily! .

On a serious note, you should have your savings working for you rather than your bank.