Am I legally allowed to invest?

Bozzi

Hello,

I'm currently recieving income-related Employment & Support Allowance (ESA) due to long standing illness. I've recently opened a Stocks & Shares ISA with Hargreaves Lansdown. I've deposited an initial sum of £120 & invested £100 of that sum into a Fund.

My question: Am I allowed to invest into Stocks & Shares Funds considering I'm receiving 'income-related' ESA? I'm asking this because within investments, 'funds can go up aswell as down' - (would that be classed as income if they go up?). As you can tell, I'm new to investing and I'm very confused about the rules regarding benefits and what your allowed/ not allowed to do, despite allot of research trying to get some answers on this issue.

What do you guys think? Am I breaking rules/ is there something that I have to declare/ is it perfectly alright for me to be investing whilst on this benefit/ is it classed as income in the eyes of the law? I mean, I'm incapable of working at the moment because of my condition, so I though why not do a bit of investing & play around while I recover, but now I'm worried that I'm doing something wrong and majorly stressed out because there is no clear answers out there.

Question put simply: Am I breaking benefit rules by investing within Stocks & Shares ISA funds whilst claiming Employment & Support Allowance (income-related).

I hope someone can shed some light on this, Thanks

masonic

The capital value of your investments would count towards means test limit of £16k for savings and investments. Possibly dividends would need be added on to your income, but if you are investing a few hundred pounds this is going to be immaterial. So, it shouldn't be a problem.

soontobemrsg

I do believe the capital value is £6k ESA, as the other poster suggested dividends would need to be declared as income.

masonic

soontobemrsg wrote: »

I do believe the capital value is £6k ESA

I was going on the information provided at: http://www.disabilityrightsuk.org/employment-and-support-allowance-overview

11. The low income test - income-related ESA
...
You cannot get income-related ESA if your (and your partner’s) capital or savings are over £16,000.

...but there might be nuances not mentioned in that factsheet.