Incapacity Benefit moving to ESA - what about savings?

DazednConfused1980

Hello

I'm aware from various news sources that Incapacity Benefit is gradually being replaced by ESA for those who will reach State Pension Age after April 2014 (this is me). IB is not means tested, and so my savings are not taken into account at the moment - but, I understand the ESA is means-tested (or at least one part of it is, I know that there are two) so what will happen to my savings? Will I be subject to a deduction of ESA when I get transferred onto it because they apply the 'tariff income' rules?

Thanks in advance for any help!

healy

DazednConfused1980 wrote: »

Hello

I'm aware from various news sources that Incapacity Benefit is gradually being replaced by ESA for those who will reach State Pension Age after April 2014 (this is me). IB is not means tested, and so my savings are not taken into account at the moment - but, I understand the ESA is means-tested (or at least one part of it is, I know that there are two) so what will happen to my savings? Will I be subject to a deduction of ESA when I get transferred onto it because they apply the 'tariff income' rules?

Thanks in advance for any help!

No your savings will not be affected if you manage to get contribution based ESA, but contribution based ESA will only be payable for 12 months max if you manage to get it and then depending on your savings income based ESA will be reduced/wiped out if you manage to get that.

DazednConfused1980

Thanks for the quick reply, Healy.

Grem

healy wrote: »

No your savings will not be affected if you manage to get contribution based ESA, but contribution based ESA will only be payable for 12 months max if you manage to get it and then depending on your savings income based ESA will be reduced/wiped out if you manage to get that.

Could you expand on this please?

Is there a scale, savings/ESA allowance, which comes into effect after the 12 months which you mention?

Cpt.Scarlet

Grem wrote: »

Could you expand on this please?

Is there a scale, savings/ESA allowance, which comes into effect after the 12 months which you mention?

The Welfare Reform Bill will limit eligibility for Contribution Based ESA for members of the WRAG,, but not the Support Group to one year from the date you are transferred from IB to ESA.

After this, a claimant would be eligible for Income Related ESA subject to their meeting the associated means test.

Details of the means test are on the following link

http://www.benefitsnow.co.uk/esa/incrit.asp

healy

Grem wrote: »

Could you expand on this please?

Is there a scale, savings/ESA allowance, which comes into effect after the 12 months which you mention?

If you have over £16,000 in savings you will not receive income based ESA.

More details here:http://www.disabilityalliance.org/capital.htm#Lower savings limit

schrodie

What happens if after your one year (assuming it remains at that) in the WRAG of CB ESA you develop a more serious illness or your condition deteriorates can you put in another claim for CB ESA?

tom9980

schrodie wrote: »

What happens if after your one year (assuming it remains at that) in the WRAG of CB ESA you develop a more serious illness or your condition deteriorates can you put in another claim for CB ESA?

The likelihood is if you have been on CB ESA for awhile you wont have the contributions to get it again no matter how ill you are. Basically the government will be screwing people who are ill and vulnerable leaving them at the mercy of family or partners to support them, despite the fact illness and disability is costly. DLA is likely the only option left open to those people but not all will get it.

There are motions to try and change this 12 month limit and i hope it succeeds.

pinklady21

Agree with Cpt Scarlet - it depends on which group you are allocated to - if you are in the Support group, your benefit will continue unaffected by savings regardless of whether your ESA is income based or contribution based.
If you are in the WRAG and on Contribution based ESA, then there are moves afoot to limit this to a year.

This is despite Government assertions that no-one will be any worse off as a result of the migration from IB to ESA.
Clearly nonsense!

Not sure yet what happens if you are allocated to the WRAG then become eligible for the Support group after the 12 months, perhaps because your condition has deteriorated.

There was a very interesting exchange on the proposed 12 month limit yesterday between Dame Anne Begg Chair of the Work and Pensions Select Committee in parliament and Chris Grayling, Minister for Work and Pensions.

The Committee was taking evidence in its enquiry on the Migration to ESA.
You can watch the entire session here -
http://www.parliamentlive.tv/Main/Player.aspx?meetingId=8532

a transcript will be available on the W+P committee page on the House of Commons website in due course.
The part about limiting WRAG comes near the end of the broadcast.

It seems the govt is determined to treat ill and disabled people who are not fit for work (as that is why they are eligible for ESA) the same as JSA claimants - ie the benefit is time limited.
Despite a number of attempts by Dame Anne to get the minister to agree that this is fundamentally unfair, all he could say was

"I understand your point, but we are living in straightened financial times"

This is despite him saying earlier in relation to people who drop out of the ESA system, that
"This is not about creating a system where people disappear into poverty".

It seems the govt is happy to make the disabled pay for the errors of the bankers.

pinklady21

Meant to add - there is an Early Day Motion no 1791 in parliament at the moment that is protesting about the raft of welfare reforms.

You can check whether your MP has signed it here:

http://www.parliament.uk/business/publications/business-papers/commons/early-day-motions/edm-detail1/?session=2010-11&edmnumber=1791

If they have not, then you can email them via the House of Commons website and ask them to sign it and support the motion.

I asked mine who is Labour, to sign it last week - so far his name is not on there, think I will chase him up!

schrodie

tom9980 wrote: »

The likelihood is if you have been on CB ESA for awhile you wont have the contributions to get it again no matter how ill you are.

But what happens if your illness deteriorates to the point that you would be eligible for the Support Group of ESA? Or you unfortunately have to start receiving cancer treatment?