Advise on benefits and a due endowment payout

shalton

Hello,
Please could you help me with some advice.

23 years ago i started a, 25 year, endowment policy that would cover paying off my mortgage after 25 years.
The endowment will pay out significantly less than it is meant to, but i have paid off my mortgage many years ago.

I damaged my back at work, aged approx 40 and now receive a small ill health pension, a reduced contributory based ESA, a small allowance of Industrial injury disablement benefit. As well as this we receive working tax credit and child tax credit, child benefit and my wife's wage.
Due to my back problems, and to a lesser degree arthritis, i am very, limited in what i can do physically.

I am very thrifty and try to use my time to save money where possible
The windows in our house are UPVC but are almost 20 years old and because of cost we just replace individual glass panes when necessary. As the windows are old they allow damp to form around all the windows.

Our car, which is necessary for me to get out and about is although not ancient is getting tired and leaking in (another damp problem).

There are various other things that, if i was healthy and working, would be done in order to keep our home up to a good standard.

Up until my back problem, for which every avenue has been looked at (including and operation on my spine), I have always worked and not claimed any benefits.

When the endowment pays out, would i be able to use the money to bring everything up to a reasonable standard without the benefits being affected? I do not want to cheat the system. I just want to provide and do what i can, in a physically limited way, for my family. My wife, my 15 year old Daughter and my 2 year old son.

I am completely against benefit cheats and i never ever wanted to be a benefit claimant, but my circumstances where sadly, completely changed with my back.

Thank you for your time and I do hope you can advise me on my situation.

SH

seven-day-weekend

No-one can ever be absolutely sure, but I personally would say that upgrading your widows and car would not be seen as deprivation of capital in order to claim benefits.

nannytone_2

contributions vased ESA isn't affected by capital, nor is industrial injuries benefit.
tax credits are only affected by interest on the capital above £300 a year.

you don't need to worry about deprivation of capital as you have no means tested benefit, so it is yours to spend as you like

densol_2

I agree with Nannytone. As you are on contribution based ESA and IIDB ( which is not means tested ) the capital will not affect these benefits and neither will it affect CTC etc.

shalton

Thank you to everyone for the advice. It is appreciated.
I feel as though I am wrong spending it/some of it though.

brewthebear

Best advice would be to contact them at least you then have correct information

shalton

I am also worried that even though I have been paying in for 23 years up to now, that I could have benefits suspended and have to use the money up before they are re-instated.

TELLIT01

Although your ESA entitlement will not be affected by the endowment policy payout, you are supposed to report all changes to DWP. I would do so anyway.

densol_2

TELLIT01 wrote: »

Although your ESA entitlement will not be affected by the endowment policy payout, you are supposed to report all changes to DWP. I would do so anyway.

This is not correct. When you apply for contribution based ESA they do not ask for capital details. I know this as Im on CB ESA and have rather a lot of capital. It's a much shorter form ( totally different to an income based claim ) so there are no changes to report as capital wasn't reported in the first place. Income ( permitted work ) or pension pay is different as these do affect entitlement to ESA and the rules are different.

It's really important to know what changes are required to be reported and what are not as DWP call centres are not the most knowledgable and calling unnecessarily can lead to misunderstandings.