ESA, SMI housing benefit, please help.

starfighter

I have schizophrenia and so lost my job. I am now claiming ESA, PIP and SMI.

I part own a house with my brother which we have a joint mortgage on.

I first received ESA and PIP

I then applied for SMI (help with mortgage). All that happened was they reduced my ESA and started paying the same amount of money to my lender (Halifax). So it seemed rather pointless.

My brother is having a baby and we might need to sell the house so he can move on so this would mean me renting and an end to SMI and hopefully getting some housing benefit.

Am I right to assume that my ESA will go back up to the pre SMI amount and I would also get housing benefit which is about £100 a week and that this time it wouldn't reduce my ESA again or would it?

I might not have a choice but would I actually be better off renting or does claiming housing benefit reduce ESA like claiming SMI does?

Sorry for the confusing post, please help

pmlindyloo

starfighter wrote: »

I have schizophrenia and so lost my job. I am now claiming ESA, PIP and SMI.

I part own a house with my brother which we have a joint mortgage on.

I first received ESA and PIP

I then applied for SMI (help with mortgage). All that happened was they reduced my ESA and started paying the same amount of money to my lender (Halifax). So it seemed rather pointless.
Are you sure this happened? The letter about SMI is rather confusing. Your ESA should not have been affected.
My brother is having a baby and we might need to sell the house so he can move on so this would mean me renting and an end to SMI and hopefully getting some housing benefit.

Am I right to assume that my ESA will go back up to the pre SMI amount and I would also get housing benefit which is about £100 a week and that this time it wouldn't reduce my ESA again or would it?

I might not have a choice but would I actually be better off renting or does claiming housing benefit reduce ESA like claiming SMI does?

Sorry for the confusing post, please help

Housing costs (SMI) are paid separately to ESA as is rent.

Please check your award letter. How much ESA have you actually been receiving?

The amount of HB you get will depend on your savings from the sale of the house. Over £16000 and there would be no HB. In fact, if your ESA is income based then that would stop too if you had savings over £16000.

So, to sum up, SMI and HB are paid separately to ESA. Your ESA will not be affected by HB or SMI.

starfighter

ok. I will have to have a look for the letter. I think I will also give the job centre a call also.

The house sale wont give me more than 16k.

epitome

You say they reduced your ESA...

From what £xxx
to what £xxxx

either fortnightly or weekly figures wil do just tell me which is which,

If fortnightly, tell me if you had any deductions...

anniemae

I am also confused with regards to SMI benefit since migrating from Incapacity benefit to ESA (support group) my housing benefit to my building society has been deducted to the amount of £23.79 from my weekly ESA benefit and they paid it direct to my building society. I received a letter from the DWP today which stated that Serco would telephone me with regards to taking out a loan. I rang the DWP said i did not want a loan and asked that as the money was taken off my benefit that when the change over happens in April 2018. Would be possible that my whole benefit of ESA would be paid to me and i would make the payment myself they said that would not be possible as if i didnt take out the loan i would only receive £103.50 not the £112.08 and also that would make me liable to my council tax and dental etc. By now i was very confused but they were adament this is what would happen. Therefore if I take a loan out they would still deduct the money from my benefit and i would still have to pay the money back plus interest to the dwp when i sell my house. Anyone have any answers please

[Deleted User]

Explained here>>>https://www.gov.uk/support-for-mortgage-interest/what-youll-get

anniemae

thank you for your reply i have looked at that link but still cant see the answer i'm looking for, dwp told me if i take the loan out they will still deduct £23 from my ESA benefit so if they are giving me a loan for that amount and pay interest on top why do they have to keep deducting the money from my ESA as well.

pmlindyloo

I think we need to know exactly what money you are getting.

SMI is not deducted from your ESA benefit. It is paid directly to your mortgage lender. However the letter about this is confusing and suggests that it is deducted so....

Please tell us what your ESA award letter says about how much you are receiving.

Are you on contribution based ESA or income based? (eg do you have any savings? Do you have any pensions? Do you have a transitional protection from when you were transferred for Incapacity Benefit to ESA? Do you receive DLA/PIP?

Look at your ESA award letter and tell us exactly the amounts that it says on the letter.

I think you are just confused about the SMI. It is not deducted from your ESA.

anniemae

I will ask my son to get all my paperwork hopefully tomorrow and will then have all the info I was on DLA high rate mobility and care when I transferred to PIP I was awarded enhanced mobility and standard care I was only 1 point short for enhanced care I did ask for a reconsideration but was informed not going to change i did not have the energy due to ill health to go to a tribunal . Following a divorce i had to revert to an interest only mortgage. When i was in receipt of Incapacity Benefit I received the full full amount and paid it to bldg soc myself I also had income support of 10p and i tell no lie as it is known as a 10p case by the dwp I was sent a giro for £1.30 every 13 wks, when I transferred to ESA support group i was told i could not pay it myself and it would be deducted from my ESA allowance sum of £23.79 (i dont know what happened to the 10p) and i would receive £88.29 a week paid every two weeks £176.58 I am in receipt of a occupational pension of £100 a wk. When i have my paperwork I will post more info

anniemae

sorry forgot to say I am on income and contribution based ESA and have very little savings just over £200 how can I find out if I had transitional protection when migrating from incapacity benefit to ESA i remember being told in a letter I would be no worse off when i was told it was being deducted from my ESA i specifically asked if I could continue as before paying it myself I was to had to come from my ESA and that has caused no end of problems as I have to top up my interest only mortgage as £23.79 does not cover the interest, many thanks for your earlier reply any help you may be able to give will be very much appreciated.

BorisThomson

It is a poorly phrased letter. Your SMI is not reducing your ESA. It's best explained by example (made up numbers).

Currently:

Your ESA entitlement is £100
Your housing costs entitlement is £30
Your total entitlement is £130, with £30 of them going to your lender
You receive £100

When the SMI becomes a loan, if you choose not to take the loan:

Your ESA entitlement is £100
You will receive £100

Your entitlement to income based ESA will cease, but you will keep your contributions based ESA.

The reason SMI no longer covers your mortgage interest is because the rate payable has reduced significantly over the years. It now reflects an average rate, but fails to consider that most on long term benefits will not have access to the lower interest rates.

(It's unusual that you used to receive the SMI directly. That suggests that you had a very old claim, or when your claim started your building society was not signed up to receiving payments directly.)