ESA and Savings

Hi Denise

Sorry, I assumed I had been moved from one to the other.  I was getting the income related part of ESA.  This was stopped after I came into the inheritance. I still have over £16000 this year, but probably won’t have by 2020 when I’ll use it to cover the shortfall on my endowment mortgage. 

Do you think they need to see the current balance just to make sure I’m not entitled to anything else?  I’m not wanting to claim anything else and realise I’m in a lucky position (for now) so I’m not grumbling.  I just wondered if it is normal to have to send them balances of my savings.

I was working as a self employed builders for over 30 years  but had a serious spinal injury which has prevented me from working for over 10 years and isn’t going to get any better.

Thank you 

Will

Hi Will,

When you're in the Support Grou once you're claiming Contribution based you'll always claim this. Then depending on household income you maybe entitled to the premium on top, which is the Income Related top up.

If you're only claiming the Contribution part now then your weekly money should be £110.75 which is £221.50 every 2 weeks. Is this what you receive? Sorry to ask you this but this is the easiest way to work out exactly what going on. Once i know this i'll be happy to advice you further.

I get 224.10 every two weeks, which is close!

Did you transfer from Incapacity benefit? This maybe why you get a little more money. If so then it does sound like you're on Contribution based, and this is not means tested so any savings/capital you have won't affect this.

I have no idea why they have written to you but if i was claiming CB ESA and they wrote to me like this then i would have rang them to ask why as soon as i received that letter. I'd advice you to do the same. What savings you have is nothing to do with them because your benefit isn't means tested.

If you ever applied for the income related top up again then they will want to know what savings you have. Paying of debts/mortgage could be deprivation of capital sometime in the future, if you did apply for those top ups. They will want to know where the money went to, what it was spent on, with bank statements and receipts. Then a decision maker will decide if it's classed as deprivation of capital.

I phoned them this morning and they said they need all my statements from the past 12 months.  When I asked why, they said that because I might go below the 16000 in the future they will need to see if I’ve deprived myself of assets and bank statements could be difficult to obtain several years from now.  I told her that I realise paying debts and mortgage will probably be seen as deprivation but she said that they’ll still need to see statements each year.

I can’t say that I’m happy that my statements will be sitting in a drawer or worse still, stored online but I’ve got no choice. 

You're welcome. They have every right to check on your savings for future reference by the way. This is because of deprivation of capital if you apply for the Income Related top ups again in the future. If they think you've deprived yourself of the money then you'll still be classed as having it and will be refused those top ups.

Hi,

I have no idea how much savings you have so wouldn't be able to help with your ESA amount. Your PIP daily living is correct.

Sorry saving now £10730.30 + Esa/PIP May, payments will take me to £11662.50

Thanks Twiglet,

No problem. Yes, the £22 they're deducting is correct.

Thank you Denise, will have to arrange a holiday to visit family and friends then to help spend the cash, included in the total was what PIP owe to me £1184.55 😉

You're welcome. You do realise that any backdated money from benefits is disregarded for 52 weeks for means tested benefits, i hope? How much did PIP owe you? and when were you backdated that money?  Please do PM this if you don't want to post it on here.

Personal Independence payment your mandatory reconsideration notice 19 February 2018:

I can award standard rate of £55.65 for your daily living needs from 25 September 2017 to 7 November 2021

Your payments:

We will pay £1184.55 into your account on 23 February 2018.

This is owe the money that you from 25 September 2017 to 20 February 2018.

We will than pay your benefit into your account every four weeks.

Then I received another letter on 20 March 2018.

Personal independence payment yearly update:

Your new total weekly amount is £57.30 from 9 April 2018

Thanks Twiglet,

The money paid to you each fortnight and monthly shouldn't be counted within your savings because it's goes from a certain period of time. Obviously this is because they have to give you time to pay your bills, buy food and everything else you need to pay out per month/week. I'm not sure what period this is from.

Having just working out your savings and deductions again then i'm not sure how or where they got that £22 deduction from. If you had £10,000 savings, this will take you £4,000 over the lower amount. This means that for every £1000 over you will be deducted £4 so for £10,000 you should be deducted approx £16. The PIP back pay should NOT be added to your savings for means tested benefits because it's disregarded for 52 weeks. In my opinion they are deducting too much money and if it was me then i'd ring DWP to ask how they worked out that figure.

Also when spending please do be careful of deprivation of capital.

I checked my bank account and Esa have paid me £354.90 today, is that right?

Thanks Twiglet,

The best thing for you to do here is to put all of your details into a benefits calculator and this will tell you everything you're entitled to. I don't know your circumstances to be able to help you with this. If you think that they're taking too much off you for your savings then you'll need to ring ESA and ask them. Good luck.