savings esa

[stardust80]

Hi, my father passed away in August and recently received an inheritance of 12,000 from his pension. My sister got the other half.

 

I was on income related ESA in the support group and pip so I declared it to dwp. A few days later I received a letter from jobcentre asking for a bank statement. But a few days after that I got another letter from them saying they've taken me off income related ESA and put me on contributions based.

 

Now that I'm on contributions based ESA I wouldn't need to send the statement would I?

[tezza1234]

I would anyway, just in case it came from different departments, you don't want the next letter to be a suspension one.

[Nystagmite]

Some people on contributions based are also entitled to some income based. I'd send the statements. Also, do you receive housing or council tax benefits?

[stardust80]

It came from the same department. I don't receive council tax or housing benefits.

[antone]

Advise that you send the statement - if you have £12,000 in savings you may still be entitled to some ESA(IR) in addition to your ESA©. Also, if you are in England, your automatic entitlement to free prescriptions is based on you being entitled to at least 1p of ESA(IR).

 

Additionally, you don't want any suggestion that you were overpaid benefits in the past, and letting them see the evidence should take care of that potential problem.

[RaeUK]

... recently received an inheritance . ... I was on income related ESA in the support group and pip so I declared it to dwp. ... a few days after that I got another letter from them saying they've taken me off income related ESA and put me on contributions based. ...

Just to clarify, as this is completely new to me, coming off IR ESA due to inheritance, you can still receive ESA in the form of Contribution Based?

[stardust80]

Just to clarify, as this is completely new to me, coming off IR ESA due to inheritance, you can still receive ESA in the form of Contribution Based?

 

Yes,I phoned them. They said they put me on contributions based ESA because of the inheritance.

[antone]

Just to clarify, as this is completely new to me, coming off IR ESA due to inheritance, you can still receive ESA in the form of Contribution Based?

 

Yes - capital/savings does not affect contributory benefits. You could have several million in the bank and still get your £100 per week ESA© - though I suspect many in this position wouldn't bother.

[RaeUK]

Ok, thank you both so much for that. I had absolutely no idea that was a possibility. In a few months I will find myself in a similar position as stardust. I had just presumed I would be cast adrift to make the inheritance last as long as possible before having to re-apply for IR ESA when the sum falls to the appropriate level. It just means that it will last that little bit longer.

[antone]

You may find you receive less when you move to ESA©. I can't remember your precise circumstances, just that you had a epic struggle to be awarded ESA at the SG rate, but if any part of your weekly payment is premiums (for example, Enhanced or Severe Disability Premium) then these are not available to someone who has no ESA(IR) entitlement. Also, if your ESA(IR) award is completely nilled by your inheritance (if it takes your savings over £16,000) you may wish to complete form HC1 to request consideration of your entitlement to free or reduced cost prescriptions and dental treatment - an entitlement which is automatic if you receive more than 1p per week ESA(IR).

[RaeUK]

Ah, you have a good memory Antone. It was indeed epic - 4 years give or take. I've just sent back my re-assessment ESA50 and it reminded me of those bleak times! Aye, my Step-Mum passed away suddenly late last year. When all is done and dusted, the inheritance will be about twice the limit after which no IR ESA is received. I appreciate that the Contribition Based ESA SG will drop to the basic weekly rate but, as I expected nothing at all, I'll not grumble.

[Nystagmite]

Rae - even though you wouldn't be entitled to IR ESA, (not knowing your situation, I wouldn't know whether you'd get CB) you would get your NI paid if you have over £16000 in savings. If entitled to CB, it's something like £105 per week for support group.

[stardust80]

Contributions based ESA is £109.30 week, Income related is £125.

[RaeUK]

Thanks Nysta, good thinking on the NI.