Will ESA be lost with a temporary lump sum hitting my account?

TELLIT01

Paying off the shortfall on the mortgage will not be an issue. Paying off credit cards and other personal loans may be. As you've already been advised, each case is considered on its merits and it's impossible to give a definitive answer.
My experience when I worked on ESA processing was that continuing the normal pattern of payment on credit cards or other loans would certainly be OK, as would paying off any previous shortfall. The potential problems come with paying of large debts early and thereby qualifying for benefits. That's the area which can fall under the heading of deprivation of capital.
The upper limit on savings for Income Related ESA is £16k, so if paying the mortgage off drops the savings to below £16k her benefit certainly won't stop.
If the savings is over £16k after mortgage payment, there is a chance that ESA would stop but the figures sound marginal and if she did have to reclaim it would be within the linking period.
Marliepanda replied whilst I was putting this together. I agree with what is said there about clearing £9k of other debts not simply being ignored by DWP.
I would be inclined to call ESA again and ask if you can speak to a Decision Maker for guidance. They won't give an absolute Yes or No but should be able to give a general steer in the right direction.

baza52

I would pay the credit card off in full.
IF the decision maker were to reject it and treat you as still having the money the worst case scenario would be to live off the CC.
End of the day you would be in the same position as if you didn't pay it.

Chance are you will be fine paying it off and DWP will not query it.
Its a no lose situation.

Topcat1982

Happy MJ's posting style reminds me of someone...

baza52

Topcat1982 wrote: »

Happy MJ's posting style reminds me of someone...

would that be a member that knows how the benefits system works?
Also someone that gives impartial advice?

Far too many long time posters here that give an answer they think should be correct rather than one that is actually is correct.

Far too many personal opinions are posted rather than facts.

missbiggles1

baza52 wrote: »

would that be a member that knows how the benefits system works?
Also someone that gives impartial advice?

Far too many long time posters here that give an answer they think should be correct rather than one that is actually is correct.

Far too many personal opinions are posted rather than facts.

Far too many people offering advice that could leave people in an extremely difficult situation.;)

baza52

missbiggles1 wrote: »

Far too many people offering advice that could leave people in an extremely difficult situation.;)

The OP asks a straightforward question.
The same old posters appear saying this WONT be allowed and you cant do this or that.
Truth is, a lot of what they say is not correct.

To be found to deprive yourself of capital HAS to be a deliberate act to claim benefits.
Paying off a debt that is due is not necessarily a deliberate act to claim benefits. By paying off a debt you can save yourself not only interest but you don't need to pay weekly or monthly from your benefits and it benefits you in the long run just as a working person who comes into money would do the same to reduce their outgoings.

As I have mentioned in other threads I paid a 5k credit card bill and it was not even questioned.
Holidays and a car etc. can also be bought from a windfall but these posters will not tell you that because they don't like to think you are doing better than themselves and that you should continue to live on the same income as you would get on benefits alone.

Remember people, its about ENTITLEMENT not personal opinions.

Topcat1982

baza52 wrote: »

would that be a member that knows how the benefits system works?
Also someone that gives impartial advice?

Far too many long time posters here that give an answer they think should be correct rather than one that is actually is correct.

Far too many personal opinions are posted rather than facts.

I meant the resident troll.

The correct answer is you write and get permission first, to cover your back. As many on here have done.

GirlFromMars_2

Like Topcat says, the only way to get a definitive answer is to write to your local regional benefits office (not the jobcentre!) and ask for a written decision from a Decision Maker.

Deprivation of Capital decisions can only be made by a decision maker. Each decision is different, and based on individual circumstances. Posters here can only give you personal opinions, you can't even guarantee that two decision makers will view a situation the same way.

baza52

So basically you write and ask for confirmation as one decision maker might agree its ok and another will say no.

What's to say the DM you ask will say no you cannot pay it but IF you do pay the DM that looks at what you spent your money on says its OK?


My original quote to PAY THE CC still stands.
If they do not pay the CC off they will spend the equivalent on rent and everything else their benefits would normally cover.
If the DO pay it AND the DM says they are treating them as still having the capital then the worst case scenario is that the you end up with a CC debt the same size as you originally had.

IF on the other hand the DM says it was ok to pay the CC off you end up without a debt over your head and your benefits continue to be paid.

Its a no brainer.....

TELLIT01

baza52 wrote: »

Remember people, its about ENTITLEMENT not personal opinions.

Precisely correct for once. You are expressing a personal opinion based on one instance of an action not being questioned i.e. you paid off a credit card and nobody queried it. That is not the same as being able to state categorically that such actions will never, and should never, be questioned.
From many years of processing ESA claims I can state that many of these types of actions (paying off debts which don't have to be paid off) have resulted in deprivation action being taken.
It's up to the OP whether they wish to believe that one personal experience or the direct knowledge of people who have actually worked on the system.