my wife is on benefits and is going to have compensation?

baikal

Hi peeps, my wife had an accident on a bus 5years ago and is having a compensation payment at last.
She held down 2 jobs before this and is now on DLA and some other benefit.
Problem is this will take here over the 6000.00 savings limit.
Now I do have some debt and this will be payed off, and this should take us under the threshold of the 6000.00 limit.
I work full time and have done for years.
What would happen if we use the money to pay of the debts but are over the threshold for a few days?
The problem is the otherside also is paying back the CRU - benefits my wife has had so far so DHSS will know about it.
Not sure if this is in the right section of the forum as it looks at 2 areas benefit and debt.
I should be happy as I will be debt free - but this is a worry.

julie03

What's the other benefit. It won't affect DLA

baikal

The other one is ESA. Employment and Support Allowance.

rogerblack

Several partially related matters.
Firstly - paying off debts that are not being demanded to be paid off now (you're getting angry calls) may be considered deprivation of capital.
If the ESA was gotten for the condition caused by the accident, part of the payment may be claimed back by the DWP.

Payments for personal injury are not counted as capital for one year, or if properly put into a personal injury trust, ever.

There is no £6000 limit for means tested benefits - the limit is generally at £16000 - at £6000 you start to get assessed as having an income from the capital - which reduces your ESA - £1 for every £250 - so at £8500 £10 down a week.

However, the capital is all quite irrelevant assuming you are living together.
She can only be on contribution based ESA, as your income would otherwise wipe out her income-based ESA entitlement.

For contribution based ESA - there is no capital limit at all.

baikal

Thanks Roger.
The benifits that have been paid to my wife are being paid back as well as the compensation from the same source. the CRU is covered by them.
My wife is indeed on contribution based esa.
So we have nothing to fear then.

midnight_express

The savings limits only apply to means tested benefits.