Incapacity Benefit moving to ESA - what about savings?

sunnyone

overthehill50 wrote: »

Hi. I have been on IB for 12 years and when transferred to ESA(CB) will most probably be put in the WRAG. After a year my savings will mean that I will not qualify for ESA (IB). However I have a problem as my money is tied up in a five year bond and I only have a small occupational pension. I can only get my hands on the money if I die or become bankrupt before the date of maturity. What will I live on?

You can always get your hands on your money, it will just cost you to do it so you can get your money and live on that.

overthehill50

Thanks. I telephoned the bank and told them that i would pay back all the interest that I had received so far and they refused.

Chorlie

toscat wrote: »

hi, pink lady,saw your post about savings not being affected if in support group regardless of whether you're in contribution based or income based esa.My friend has severe lung disease and has been pensioned off work and due to receive a lump sum.she is on high rate dla and high rate esa and been told she is on support group.she was told she is on contribution based esa but receives some of the benefits that income based has i.e. help with mortgage interest,free prescriptions,etc.she didn't think you could be on both but they have told her she can. Her worry is what will happen to her works pension,will she lose out on her benefits because of her lump sum which she needs to pay back family and friends who helped her with mortgage when she was off work with half pay, she has worked her entire life and never had to use benefits,so is unsure how system works.She did phone benefits up and told them she would be getting some money from work and they told her they are not sure how it would affect her and to phone back when she does get her lump sum. Any advice would be appreciated.

Her savings will / could effect her ESA if she is on Income Based ESA (depending on the amount of her savings) regardless of if she is placed in the WRAG or Support Group. If you have over £16k in savings you won't get Income Based ESA. Also if you have a pension the whole amount will also effect Income Based ESA.

You're savings will not effect Contribution Based ESA and only the amount of your pension over £85 a week will effect it (every £1 over £85 will drop your ESA by 50p). However if you're placed in the WRAG you can only get it for 12months (if this new rule comes into play), this wont apply if you're in the Support Group.

sunnyone

overthehill50 wrote: »

Thanks. I telephoned the bank and told them that i would pay back all the interest that I had received so far and they refused.

I have had to deal with one of my fixed term investments this year because I needed a drive from wheelchair WAV because Im severley disabled and the company (AXA) sorted it out for me, you dont normally get intrest on fixed term investments upfront, they are added when you have passed the investment milestone and thats when the profits etc. are also added in, the only other type I have had is where you lose intrested because of conditions attached to the investments ie. a 90 notice account and again this is easy to break but expensive.

We have a broad portfolio of diffrent investment from mini/maxi ISA'a and bonds of various nature all of which we are living on due to disability and you can take your money out of them all whenever you want to but it will cost you and the DWP wont care because you have above the amount for means tested benefits.

overthehill50

Thanks Sunnyone for your reply and sorry to hear about your difficulties.

My bond is with Barclays and I opted to have the interest paid into my account on a monthly basis instead of in one lump at the end of the five years. I have a small ISA also and am able to take money from that for as long as it lasts. As you say though DWP won't care if I can access the money from the bond or not. Of course all this was tied up before I had heard about any of the new benefit changes.

sunnyone

overthehill50 wrote: »

Thanks Sunnyone for your reply and sorry to hear about your difficulties.

My bond is with Barclays and I opted to have the interest paid into my account on a monthly basis instead of in one lump at the end of the five years. I have a small ISA also and am able to take money from that for as long as it lasts. As you say though DWP won't care if I can access the money from the bond or not. Of course all this was tied up before I had heard about any of the new benefit changes.

Same here, we have been investing for nearly 15 years so long before the changes came about.

I should go straight into the support group of ESA when the change over happens but with the tales you hear online, my personel experiance with a friend and my husband collapsing with kidney failure and now also having heart failure and had a stroke I know I cant take anything for granted.

overthehill50

Good luck with the change over I wish you and your husband all the best.

sunnyone

overthehill50 wrote: »

Good luck with the change over I wish you and your husband all the best.

Thank you.