deprivation of capital

cfnc

Hi we were on income based ESA. But finally my husband had his critical illness pay out.
I have informed the ESA and they are taking us off income based and putting us in contribution based, as he is in the support group.
We have a mortgage and we were under the impression we would need to use the payout to fund our living expenses until it runs out, it will not last long.
I called the ESA and they said to pay lump sum off mortgage. I am wary as if we do we will not be able to afford to live without going onto income based benefit.

Amy one with any suggestions please comment. We do not want to pay off some of our mortgage and then be left struggling. Our intention was to use the claim money to fund living until it was all gone and then claim again.

[Deleted User]

get what they have said in writing as a decision maker might take a different view than someone in a BDC call centre

Horseunderwater

Personally I would not do as the call centre person said. That will get you in trouble. What I would do is to pay off the mortgage rach month & then say an extra 10% at year end. Make sure you always get/keep all receipts for new wash machines etc during this time.

dave030445

Hi if you stay on contribution based ESA you can do what you like with the money. If you use the money to pay off the mortgage why can you live on contribution based ESA.

cfnc

Thankyou for your replies, I will investigate further before spending any of the monies.

HappyMJ

cfnc wrote: »

Hi we were on income based ESA. But finally my husband had his critical illness pay out.
I have informed the ESA and they are taking us off income based and putting us in contribution based, as he is in the support group.
We have a mortgage and we were under the impression we would need to use the payout to fund our living expenses until it runs out, it will not last long.
I called the ESA and they said to pay lump sum off mortgage. I am wary as if we do we will not be able to afford to live without going onto income based benefit.

Amy one with any suggestions please comment. We do not want to pay off some of our mortgage and then be left struggling. Our intention was to use the claim money to fund living until it was all gone and then claim again.

The advice is to continue paying your debts at the same rate. You can clear any arrears immediately if you have them and pay any outstanding bills you have. If you have some capital items you could buy now to improve his life then spend it on them.

You don't have to wait until it's all gone...just get the amount under £6,000 and it does not affect any income based benefits.

As horseunderwater explains keep receipts for any large expenditure just in case they enquire where the money's gone.

epitome

Anyone know if a critical illness payout is to be treated the same as a compensation for injury award?

Regards deprivation of Capital, if you do it with the intention of qualifying for benefits then it is DOC, what someone told me once, was that if you ask DWP Decision Maker, "Can I pay off my mortgage" the DM has to then say 'no' because you have asked and are conscious that to do so might affect your benefit. whereas if you just pay it off without asking, then the DM might swing either way on allowing it or not allowing it. Whether this is true or not I have no idea.