Owning a house and DLA and ESA?

nabitus

If as an inheritance, or gift, I am given a house, and own that house, would it affect DLA or ESA?

Oldernotwiser

It won't affect DLA or contributions based ESA but it will affect means tested ESA.

nabitus

From what I read here,
http://www.nhs.uk/CarersDirect/moneyandlegal/otherbenefits/Pages/EmploymentandSupportAllowance.aspx

it looks like contributory ESA the standard, and income-related the top-up which is if your income is low or I suppose if you have capital.

Also though I know amount of ESA depends on Work Related or more if Support Group.

Where does means tested ESA come in?

Oldernotwiser

nabitus wrote: »

From what I read here,
http://www.nhs.uk/CarersDirect/moneyandlegal/otherbenefits/Pages/EmploymentandSupportAllowance.aspx

it looks like contributory ESA the standard, and income-related the top-up which is if your income is low or I suppose if you have capital.

Also though I know amount of ESA depends on Work Related or more if Support Group.

Where does means tested ESA come in?

If you are eligible for ESA but haven't paid the appropriate NICs, you'll receive income related ESA.

rogerblack

If you are on income based ESA (or indeed JSA(IR), or most means tested benefits), any house you live in normally is not counted as capital.
Any house you own that is not your primary residence normally will count towards your capital limit, and if worth over 16K will mean you're not entitled at all.
There are some protections, for example, it's allowed to be ignored for 6 months if you're trying to sell it.
But once sold, the money will certainly disqualify you from any income related benefits.

http://www.dwp.gov.uk/docs/dmgch52.pdf - 52597 - ignored if you're trying to sell it for 26 weeks, or longer if deemed reasonable. The guidance says that if you've got it on sale at the market price, (you may need to prove this), it may continue to be ignored after 26 weeks.

nabitus

rogerblack wrote: »

If you are on income based ESA (or indeed JSA(IR), or most means tested benefits), any house you live in normally is not counted as capital.
Any house you own that is not your primary residence normally will count towards your capital limit, and if worth over 16K will mean you're not entitled at all.
There are some protections, for example, it's allowed to be ignored for 6 months if you're trying to sell it.
But once sold, the money will certainly disqualify you from any income related benefits.

http://www.dwp.gov.uk/docs/dmgch52.pdf - 52597 - ignored if you're trying to sell it for 26 weeks, or longer if deemed reasonable. The guidance says that if you've got it on sale at the market price, (you may need to prove this), it may continue to be ignored after 26 weeks.

does that mean that if I sell it and buy a house elsewhere and it's within 26 weeks, that's fine, nothing cancelled? or can I not sell it at all? !

SailorSam

If you're in rented property now and go and live in your 'new' house it shouldn't make a difference. After all you have to live somewhere. Then again if you do decide to sell and move it makes no difference, unless of course you buy much cheaper than you buy and have cash in the bank.
Don't forget about your Council tax, if you're trying to sell and the house is empty you're given time to sell. officially 6mths but they may extend it if you can't sell.

Oldernotwiser

SailorSam wrote: »

Don't forget about your Council tax, if you're trying to sell and the house is empty you're given time to sell. officially 6mths but they may extend it if you can't sell.

The house has to not only be empty of people but of furniture.

SailorSam

Oldernotwiser wrote: »

The house has to not only be empty of people but of furniture.

When my Mum died i sold my house and bought hers from the rest of the family, i went into our Council office to explain what was happening and the woman said about the house needing to be empty to be exempt 'cos i told her i'd be moving my furniture (when i sold my house) and keep some of my Mums, then the rest going to charity shops.
She said now i'm going to ask you is the house already empty, and think carefully before you answer 'cos if it isn't you'll need to pay but if you've already emptied it you don't have to pay ........ Then she asked 'have you removed all the furniture'
She'd already virtually told me what to say, so i said there's nothing in it. She went on to say that if it were empty i should keep the curtains closed in case anyone went looking through the windows.

I'm sure they don't give that advice if they think someone is trying to fiddle, but at least in my case when she could see we were trying to sort out my Mums estate and sell my house, the Council or at least this one woman pushed me in the right direction. It took us best part of a year to get a buyer for my house and eventually move.