Benefits and savings question

[Flagg913]

A friend of mine is on esa (income related) and she has just been awarded £1.000 settlement for an accident claim....Does she need to tell the benefits agency about this and will it affect her benefit...they is another £2.250 comingin 3 weeks time as well.

[installspark]

Short answer....yes.

 

When your friend signed or, if done by phone which will have been recorded, agreed to the declaration part of this is the agreement to notify them of any changes in circumstances. One off lump sum payments are treated as capital and not as income, however the amount of capital held can affect ESA (IR); so long as your friend holds no more then £6000 in capital then the amount of ESA (IR) paid will not be affected, over £6000 in capital then their payments will be reduced by £1 for every £250 over £6000.

 

Your friend can either send a letter to the Benefit Delivery Office (BDO) together with the original letter of settlement showing the amount of the payment, or take the settlement letter to their local Jobcentre where they will take a copy and send it to the BDO.

[antone]

The above poster is right, and I make only one small correction. I am a BDO for ESA(IR). BDO is Benefit Delivery Officer. The people your friend should contact are the telephony staff at the BDC - the Benefit Delivery Centre.

 

The relevant phone number will be on any letters he or she received from Jobcentre Plus.

[Flagg913]

Thanks for the advice...so to clarify she has to declare the money...but since it's only £3.250 she won't have anything stopped from her benefits?

[antone]

Yes. Savings (windfall income counts as savings) need to be declared, but if it's under £6000 it will not affect the amount of benefit paid. Of course, if she already has money in the bank and this payment will take her savings over £6000, that would affect her benefit.

 

I add my usual disclaimer: although I am a Benefit Delivery Officer for ESA, I can't access details about this particular person. She should contact her Benefit Delivery Centre for advice.

[Flagg913]

Thanks for advice antone. I'll pass on advice and she can tell them tuesday.