Question about ESA over 6k savings

empirex

Hi,


So as a disabled person who cannot work, I was awarded the higher rates of the PIP last year. I recently won my ESA tribunal and was informed I was owed back payments. So since I started receiving PIP, I have been slowly saving quite hard due to having no money for many years and trying to build a little bit of a nest egg. These savings are now over 6K (due to the fact I spend very little and am financially responsible) and have been for several months.


Last night when reading up about ESA (I am in the support group) and how much extra money I was getting, I noticed the rules about having to inform the DWP when you have over 6K in savings! I honestly had no idea about this, all I was aware of was the benefits cap which I was told didn't apply to me with PIP so had no idea about any savings limit. I am now panicking a bit as I have been blissfully saving away not realising I was over the limit. Add to this that I will be receiving a large sum in back pay any day!


So I am a little confused what to do. If I inform the DWP when I get this extra money, they are obviously going to look back and see I have been over for a while, so that will land me in trouble, and if I don't tell them and just try to spend the money, I understand this is called capital deprivation. So I feel I am damned if I do and damned if I don't. I am a very by the book person and did not want to intentionally get caught up in any benefit fraud!


I do owe my Mum quite a bit of money from when I had little and I do still owe quite a bit on my credit card so can I technically use the extra money this way or is this also something they will pull me up over?


Any advice or information on the best course of action would be appreciated. Now as I am aware of the 6000 limit, I can be mindful to keep it under in future but its just what to do with the present sum of money.


Thanks.

poppy12345

empirex wrote: »

Hi,


So as a disabled person who cannot work, I was awarded the higher rates of the PIP last year. I recently won my ESA tribunal and was informed I was owed back payments. So since I started receiving PIP, I have been slowly saving quite hard due to having no money for many years and trying to build a little bit of a nest egg. These savings are now over 6K (due to the fact I spend very little and am financially responsible) and have been for several months.


Last night when reading up about ESA (I am in the support group) and how much extra money I was getting, I noticed the rules about having to inform the DWP when you have over 6K in savings! I honestly had no idea about this, all I was aware of was the benefits cap which I was told didn't apply to me with PIP so had no idea about any savings limit. I am now panicking a bit as I have been blissfully saving away not realising I was over the limit. Add to this that I will be receiving a large sum in back pay any day!


So I am a little confused what to do. If I inform the DWP when I get this extra money, they are obviously going to look back and see I have been over for a while, so that will land me in trouble, and if I don't tell them and just try to spend the money, I understand this is called capital deprivation. So I feel I am damned if I do and damned if I don't. I am a very by the book person and did not want to intentionally get caught up in any benefit fraud!


I do owe my Mum quite a bit of money from when I had little and I do still owe quite a bit on my credit card so can I technically use the extra money this way or is this also something they will pull me up over?


Any advice or information on the best course of action would be appreciated. Now as I am aware of the 6000 limit, I can be mindful to keep it under in future but its just what to do with the present sum of money.


Thanks.

Savings/capital affect those on Income Related benefits only. If you're claiming Contribution based ESA then savings/Capital don't affect this.

Your back dated money from ESA will be disregarded for 52 weeks. The rest of your savings without that backpay will count if it's Income related ESA you claim. Anything over £6000 will affect means tested benefits £1 for every £250 over. Savings over £16000 then your money will stop completely.

If it's means tested benefits you do claim and you have got over the limited then you do need to ring them and tell them. It does state on the bottom of every letter from them that ANY changes MUST be reported.

[Deleted User]

How much are we talking about? If you are on income related ESA then for every £250 over 6k you lose £1 benefit, if you are on cont. based ESA then the limits don't apply.
Paying off debts that aren't overdue can/will be seen as deprivation of capital.
If you have more than 16k then income related benefits will cease.
Are you also getting housing benefit/council tax support? These will also be affected by savings over 6k.
I'm not sure about back pay someone else may answer that bit for you.

Cross posted with poppy who has answered the back pay question for us.

Ames

venison wrote: »

How much are we talking about? If you are on income related ESA then for every £250 over 6k you lose £1 benefit, if you are on cont. based ESA then the limits don't apply.
Paying off debts that aren't overdue can/will be seen as deprivation of capital.
If you have more than 16k then income related benefits will cease.
Are you also getting housing benefit/council tax support? These will also be affected by savings over 6k.
I'm not sure about back pay someone else may answer that bit for you.

Cross posted with poppy who has answered the back pay question for us.

If the OP is receiving any amount of income related ESA then they're entitled to full housing benefit.

poppy12345

Ames wrote: »

If the OP is receiving any amount of income related ESA then they're entitled to full housing benefit.

That doesn't mean the OP claims it.

Ames

venison wrote: »

I'm glad someone understood my point never mind one does ones best

I was adding to your point so that the OP didn't start panicking thinking that they'd have a double overpayment.

[Deleted User]

Ames wrote: »

I was adding to your point so that the OP didn't start panicking thinking that they'd have a double overpayment.

Thanks for the clarification.

pepper77_2

Instead of trying to sort out a workaround, how about sticking with the rules, declaring your savings and accepting a lower amount of tax payers money?
Just a thought.

Mojisola

empirex wrote: »

These savings are now over 6K (due to the fact I spend very little and am financially responsible) and have been for several months.

I do owe my Mum quite a bit of money from when I had little and I do still owe quite a bit on my credit card so can I technically use the extra money this way or is this also something they will pull me up over?

It's not wise to save money when you have debts - get those paid off.

As you can see from the information above, your overpayment won't be a great deal.

Explain the situation to the DWP, pay back what you owe and relax.

TELLIT01

Mojisola wrote: »

It's not wise to save money when you have debts - get those paid off.

As you can see from the information above, your overpayment won't be a great deal.

Explain the situation to the DWP, pay back what you owe and relax.

That was my thought exactly. Anything you don't need for day to day living from your benefits should be used to clear debts, particularly credit card/store cards as the interest will quickly mount up.
Ignore the idiots who claim you are stealing benefit as you categorically are not doing so.

Mojisola

Don't expect anything to happen in a hurry.

I know someone who reported an overpayment more than six months ago. He sent off all the bank statements for the relevant period and those were copied and returned but he's heard nothing more since. They say they are dealing with a long backlog of work.