Benefit Issue

adviceline

My wife has recently been diagnosed with a terminal illness and has made a claim on her life assurance policy.How will this affect her tax credit entitlement , is it true that it runs a year behind so wont count until next year.Also claims ESA am i correct in thinking she will lose this benefit.:(:(
Worry we can do without at a difficult enough time.

pmlindyloo

I will try and help but hopefully someone else will come along and correct me if I'm wrong.

First of all, sorry to hear your news.

I believe that the value of any life insurance surrender is disregarded indefinitely for ESA so I believe that your wife's ESA will continue.

See here; http://www.benefitsnow.co.uk/esa/capital.asp

Also, as regards Tax Credits, savings are not taken into account unless the interest received from the savings is over £300 per year.

Does this help?

PS I am wondering if your wife's illness may entitle her to more financial help? Does she receive DLA? Is she on contribution based ESA and in the Support group?

adviceline

She receives DLA at higher rate £77.45 help with personal care
£54.05 mobility vehicle p.w.