Capital limits for IR ESA please.

[Asleep In Wonder]

Asking for a friend.

 

 

Could someone please point me to the current rules on capital limits, cut offs and reduction ratios for someone who is receiving IR ESA WRAG, SDA, DLA (LRC & MRC) and in receipt of LHA and CTA ?

 

 

It would be helpful if they were in some sort of simple, tabular form because my friend is profoundly dyslexic. I know this is a big ask. I can work on reformatting information but thought I would ask here, as the information might already be out there in a dyslexia friendly format.

 

 

Thank you in advance, wise folk of CAG

[wiseajak]

As far as i know u can have to £6,000

Without any affect to your benefit. Anything over that you get £1 taken away from your benefit for every extra £250 so as i understand it if u have £6,500 u lose £2.

 

Anything over £16,000 benefit is stopped completely.

 

 

However u must not deliberately depose of any of it to under £16,000 to hold on to the benefit entitlement as u will be treated as still have it under deprivation of capital rules.

 

 

Thats correct as far as im aware someone will correct me if not.

[antone]

As far as i know u can have to £6,000

Without any affect to your benefit. Anything over that you get £1 taken away from your benefit for every extra £250 so as i understand it if u have £6,500 u lose £2.

 

Anything over £16,000 benefit is stopped completely.

 

 

However u must not deliberately depose of any of it to under £16,000 to hold on to the benefit entitlement as u will be treated as still have it under deprivation of capital rules.

 

 

Thats correct as far as im aware someone will correct me if not.

 

That's pretty much correct, yes.

[ep1987]

What counts as disposing? Not that i'll ever encounter this but if i won £100k on a bet could i buy a house and then claim benefits either immediately or at some later stage?

[antone]

What counts as disposing? Not that i'll ever encounter this but if i won £100k on a bet could i buy a house and then claim benefits either immediately or at some later stage?

 

This idea is called "Deprivation of Capital" and it's decided on a case by case basis. You probably could buy a house, yes, provided that house would be your main residence - no holiday homes in Spain. You could buy a car, but perhaps not a Ferrari. If you need a new boiler, you could do that, or replace other household appliances. You get the idea.

 

In the end, you'd need to show that the expenditure was reasonable given your circumstances, and they would have to show that you spent the money with the specific intention of entitling yourself to means tested benefits.

[ep1987]

Easy solution; i bought the house so as to not squander the money on gambling and because my current living arrangement has an expiration date ;-)

 

Now all i need to do is work out how to win 100k. In reality i wouldn't claim jsa unless i absolutely had to and like most people would prefer to be financially independent. Would be very nice though not to have to pay rent/mortgage making part-time hours a possibility.

[Asleep In Wonder]

antone and ep1987

 

 

Thank you both for the information. It seems a lot simpler than I thought it would be. These limits appear to be the same as the LA applies to HB/LHA.

[Life-Goes-On]

One thing that has been missed out is that DLA won't be affected by any savings, so that would stay the same.

(even if someone got 100k)