Savings???

columbo_addict

Hi,

Friend of mine has recently been paid a big backdated payout for ESA and DLA - the amount has meant that it takes them over the £6000 savings limit......what should they do??....will any problems be caused by this??

thanks for any advice.

tinkledom

columbo_addict wrote: »

Hi,

Friend of mine has recently been paid a big backdated payout for ESA and DLA - the amount has meant that it takes them over the £6000 savings limit......what should they do??....will any problems be caused by this??

thanks for any advice.

Presumably you will have to declare it as capital? Much the same as someone that manages to save most of their benefit payments instead of spending it.
I only know about the latter as a guy who died at 88, never spent a penny of his state retirement pension - 23 years worth and amassed it in cash in his house, over £105,000 was found in drawers rolled up with an elastic bands. I should know, I found it as an executor for my late father's estate.

rogerblack

columbo_addict wrote: »

Hi,

Friend of mine has recently been paid a big backdated payout for ESA and DLA - the amount has meant that it takes them over the £6000 savings limit......what should they do??

They may not need to do anything.
DLA is not affected by capital.
ESA is not affected by large amounts of backdated benefit - the sum is ignored for the whole life of the claim. (if over 2000, otherwise it is ignored for one year)

I am unsure if the partner is also on someones ESA claim, if the additional money paid for the partner would be affected.

Meri

Definitely does not affect DLA as its not means tested. As refund re ESA it should not affect that either but do check to be sure, it can affect housing benefit check the capital/savings limit for your area, also council tax but only until you get below that limit. Hope all ok.

Morglin

It shouldn't affect anything (as it is back pay), and wouldn't affect contributory ESA or DLA anyway, but give them a ring if you want to confirm this.

Lin