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ESA and lower rate of DLA and Inheritance?

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Help please, I am currently on ESA and the lower rate of DLA. My dad passed away recently and his house is being sold. From the proceeds, I should be recieving roughly £20,000 in installments of £1000 per month. I have debts to pay off, and I also want to take driving lessons (my dad's wishes).

I need to know how this money will effect my benefits. Any help would be greatly appreciated..

.

 

 

 

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Are you on income based or contribution based ESA?


We hang the petty thieves and appoint the great ones to public office ~ Aesop

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You should have received an award letter that will tell you.


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it should say on your ESA award letters


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okay, DLA is not affected by capital

 

however income related ESA is affected by capital - if you have capital in excess of £16k, you are not entited to ESA(ir)


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you have stated that you will be receiving capital by instalments, do you know how it is to be administered? is it held in a trust?


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Whilst the total capital is in excess of £16k, it is likely that they would treat the instalments of capital paid as income for ESA purposes.

 

This means they would treat you as if you had £1000 income each month, which would exclude you from entitlement to ESA. DLA would not be affected as this is not means tested

 

paragraph 51425 - 51430 of ESA decision makers guide http://www.dwp.gov.uk/docs/dmgch51.pdf


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Yes - capital and income are not considered for DLA, so you would still be entitled.


PLEASE HELP US TO KEEP THIS SITE RUNNING. EVERY POUND DONATED WILL HELP US TO KEEP HELPING OTHERS

 

 

The idea that all politicians lie is music to the ears of the most egregious liars.

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You would actually be better off to receive the lump sum, than installments - is there any way you could change it, or is it fixed?


We hang the petty thieves and appoint the great ones to public office ~ Aesop

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How would that work Estellyn, why would I be better off? Thanks for taking the time to reply by the way.

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How would that work Estellyn, why would I be better off? Thanks for taking the time to reply by the way.

 

Receiving £1000 a month will be treated as income for 20 months as has been pointed out. But receiving a lump sum of £20,000 and living off of it will mean that once you fall below the capital limit of £16,000, you would be entitled to some benefit - I think once you get below £16,000, the deduction due to capital from your benefit would be £39 a week, and the deduction would reduce as your capital reduced. You would need to make sure you didn't spend excessively, so you couldn't be accused of depriving yourself of capital.

 

D you housing or council tax benefit?


We hang the petty thieves and appoint the great ones to public office ~ Aesop

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Receiving £1000 a month will be treated as income for 20 months as has been pointed out. But receiving a lump sum of £20,000 and living off of it will mean that once you fall below the capital limit of £16,000, you would be entitled to some benefit - I think once you get below £16,000, the deduction due to capital from your benefit would be £39 a week, and the deduction would reduce as your capital reduced. You would need to make sure you didn't spend excessively, so you couldn't be accused of depriving yourself of capital.

 

D you housing or council tax benefit?

 

Yes I receive both housing and council tax benefits. So Is it best still to receive the sum in one go?

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It's your choice, but basically if you have installments, you would lose all of your income based ESA and most if not all of your housing and council tax benefit for 20 months. If you have a lump sump and live off it, you may well be below £16000 in 4-5 months, at which point you would get your ESA back minus say £39 due to the capital, and then get full housing and council tax benefit due to qualifying for income based ESA.


We hang the petty thieves and appoint the great ones to public office ~ Aesop

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Ok, i understand. Also, I believe I may be put on on Job seekers allowance soon. Will the same rules apply then?

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What makes you think you'll be put on job seekers soon? The rules for income are the same for that as they are for ESA.

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I suffer from depression and anxiety and already have had to appeal atos's decision to get it and that was with a lot of persuasion through my doctor and the understanding that they will be cracking down on me in a year. That year is up and I have just received an ESA50 limited capability to work questionnaire.

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Just to clarify my previous post, if at the time of payment of an instalment, your total capital including the outstanding instalments would be:

 

  1. more than £16k, each instalment is treated as income
  2. less than £16k, each instalment is treated as capital

so receiving instalments will not nil your entitlement for 20 months, but for 4 or 5 months, assuming you have no other capital


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Just to clarify my previous post, if at the time of payment of an instalment, your total capital including the outstanding instalments would be:

 

  1. more than £16k, each instalment is treated as income
  2. less than £16k, each instalment is treated as capital

so receiving instalments will not nil your entitlement for 20 months, but for 4 or 5 months, assuming you have no other capital

 

 

 

 

Thanks for the clarification. I have debts I would like to pay off, or at least make a hole in. If I were to ask for the money in a lump sum and pay £4000 on my student loan, for instance. Would that be acceptable?

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Just to clarify my previous post, if at the time of payment of an instalment, your total capital including the outstanding instalments would be:

 

  1. more than £16k, each instalment is treated as income
  2. less than £16k, each instalment is treated as capital

so receiving instalments will not nil your entitlement for 20 months, but for 4 or 5 months, assuming you have no other capital

 

Do you have a reference for this - that regular income is treated differently according to how much capital a claimant has?


We hang the petty thieves and appoint the great ones to public office ~ Aesop

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