ESA support group & savings

dizzycreak

My son, 29 with Asperger lives with us at home
He has pip & esa
He doesn't spend much so has nearly £6000 in his account
I see that for every £250 over £6000 you loose £1 however I need to try to explain this to him & am a little confused

If he has £6249 will he have any reduction?

If he goes over £6000 for a few days does he need to declare it?

poppy12345

dizzycreak wrote: »

My son, 29 with Asperger lives with us at home
He has pip & esa
He doesn't spend much so has nearly £6000 in his account
I see that for every £250 over £6000 you loose £1 however I need to try to explain this to him & am a little confused

If he has £6249 will he have any reduction?

If he goes over £6000 for a few days does he need to declare it?

Savings and capitol OVER £6,000 and he needs to tell them. If he doesn't spend much then this will soon go up more.

xylophone

He doesn't spend much

Is he making a fair contribution to household expenses?

tazwhoever

OP - you will need to declare it. For CB ESA no reductions will be made. If he is on IB ESA then in your question, he would lose £1 for every £250 over £6000.

TELLIT01

If he's not contributing to household expenses, and is therefore building his savings beyond £6k and having his benefit reduced, it would make sense to increase his contribution to keep him below £6k. What you do with that money is then up to you.
It does seem crazy that just by saving a little each week from benefit payments a person can end up having their benefits reduced.

epitome

TELLIT01 wrote: »

If he's not contributing to household expenses, and is therefore building his savings beyond £6k and having his benefit reduced, it would make sense to increase his contribution to keep him below £6k. What you do with that money is then up to you.
It does seem crazy that just by saving a little each week from benefit payments a person can end up having their benefits reduced.

Or crazy that people who don't need all the benefit they are getting are able to save such sums of money at tax payers expense.

In other countries there is zero allowance for savings, i.e. you have £1 in savings then you get £73.10 benefit less that £1 = £72.10 for that week.


OP, your question...

If it is ESA Conts savings will have no effect.
If it is ESA IR any £250 or part thereof will result in £1 reduction. and savings over £6000 MUST be declared to your ESA office.

So
£6005 = £1 reduction
£6250 = £1 reduction
£6251 = £2 reduction

TELLIT01

epitome wrote: »

Or crazy that people who don't need all the benefit they are getting are able to save such sums of money at tax payers expense.

Not in this instance. We have a person with disability living with parents who, I suspect, aren't charging anything for his keep. That, to my mind at least, makes them caring parents. The potential downside is that the son's bank balance is growing purely because the benefits, to which he is perfectly entitled, are greater than his expenditure.
Vast sums are paid out to those who have made life choices which make them unemployable, so why should those who have had no choice be penalised?

[Deleted User]

Keep in mind that benefits as paid don't count as savings until the period they are paid for e.g 2 weeks benefits won't count as savings for 2 weeks.