what is the thinking behind ESA and savings?

Pineapple88

rogerblack wrote: »

It's not.
It's quite large.
It's - for each benefit (assuming under 60 and other things), 1 pound for each 250 of savings exceeding 6K.
So, 40 pounds a week.

This could be as much as 120 pounds down - though the vast majority don't pay 2000 council tax a year, so the actual number will be somewhat lower.
But it will start out around 100 pounds lower per week.
Or perhaps 3-4000 in the first year.

Happy to be corrected! I didn't work out the figures (too much hard work at that time of night!) just the basis principles.

damino

Pineapple88 wrote: »

Happy to be corrected! I didn't work out the figures (too much hard work at that time of night!) just the basis principles.

Don't jump the gun. Indeed the person with£15900 savings gets a lot less than he would if his savings were < £6000. Roger just shows you how much less.

But Roger in that post did not show you how much the person with £16100 savings gets in ESA. That's a key factor in whether you were correct or incorrect.

It looks like one or two might think the £16100 savings guy gets nothing. He can only apply for contribution based ESA, (and he's not working and has no NI contributions). So the £15900 guy is better off. He gets £40/week ESA and some reduced HB n CT.