ESA/Critical illness pay out

Debz3163

I've just received a critical illness pay out. I've also been awarded ESA (income related) Having spent our savings on buying a bungalow last year because of my mobility issues, I had intended spending this money on a new adapted kitchen and bathroom. But I'm confused about whether I need to declare the pay out to the DWP in the interim? Some forums say the money is discounted for 52 weeks, in which case it will have been spent? Please advise, I don't want to get into trouble. I'd never received benefits until my accident in 2012, so I'm not very 'savvy' on such things, but I don't want to get into a situation where I'm unintentionally claiming something I'm not entitled to!

poppy12345

Debz3163 wrote: »

I've just received a critical illness pay out. I've also been awarded ESA (income related) Having spent our savings on buying a bungalow last year because of my mobility issues, I had intended spending this money on a new adapted kitchen and bathroom. But I'm confused about whether I need to declare the pay out to the DWP in the interim? Some forums say the money is discounted for 52 weeks, in which case it will have been spent? Please advise, I don't want to get into trouble. I'd never received benefits until my accident in 2012, so I'm not very 'savvy' on such things, but I don't want to get into a situation where I'm unintentionally claiming something I'm not entitled to!

I believe you have to declare this money to DWP but it will be disregarded for 52 weeks. If during this time you spend it taking the money below what you're allowed before affecting your benefits you'll have to prove what you spent it on. If you're then shown to have spent the money to allow you to continue to recieve benefits then you'll be penelized.