Esa and lump sum early retirement affects
Posted , 5 users are following.
I am considering taking a lump sum and early retirement at age 55yrs. I am a full time carer for my wife who claims High rate DLA indefinately plus the care component indefinately, I recieve weekly high rate carers allowance and we have a joint contribution based esa claim. My lump sum Will be £16,100 and most of this will be used for mobility aid for my wife as her current equipment is in need of replacing. We will also be using some of the money on new furniature and redecorating the council bungalow , both these expenditures will take a large ammount from the lump sum so their will be less than 16k going into the bank. How will this affect our joint claim and housing benefits.
0 likes, 2 replies
denise15811 one-of-millions
Posted
Hi,
I think you need to check your ESA claim because it's impossible to claim Contributions based as a joint claim. It has to be Income Related. Income Related is a means tested benefit and any lump sum you have will 100% affect the ESA you claim. £6000 will affect your ESA £1 for every £250 over that amount. For £16,000 then your entitlement to Income Related benefits will stop.
Also it will affect your housing benefit and any council tax reduction you claim. The figures above will apply to ALL of your means tested benefits. The DLA won't be affected.
Also you'll need to be careful what you spend that money on and you'll need to keep all of your receipts. If the money is spent needlessly then it could be classed as deprivation of capital and you'll still be classed as having the money and your benefits will still be affected.
denise15811
Posted
There is no high rate carers allowance either, it's all one standard payment. Also,unless your wife was 65 or over on 8th April 2013 she will eventually be invited to claim PIP. PIP is the disability benefit that has replaced DLA and there's no longer any lifetime/indefinate awards of DLA for all those who weren't that age on the date.