Income related esa and deprivation of capital

ITISWELL

Hi, I'd really appreciate any help and advice please...
I am currently in receipt of income related ESA.
My husband and I are separated and he moved out 2 years ago.
We are in the process of selling the FMH (former matrimonial home).
I am looking to buy a smaller, more affordable property, closer to family for support.
My children, aged 15 and 16, from my previous marriage, live with me.
After costs of sale, my proceeds from the sale of the house will be approx £120,900.
I intend to put £92,500 from this as a deposit on my next home and take out a mortgage for £92,500.
My costs for solicitors, removals and stamp duty etc. are approx £6,300.
I intended to pay off my credit card debts of approx £18,600, through the solicitors on completion.
And intend to keep approx £3,500 in my account.
The ESA enquiry line tell me I can do whatever I like with my own money; however I may not be entitled to any payment of ESA if I pay off my credit cards, as they will most likely view this as deprivation of capital.
I need to repay the credit cards in order to qualify for the mortgage.
Does anyone have any advice please?

Willing2Learn

Hi CJ26 and welcome to the forum.

You've asked an interesting question. On quick investigation there does not appear to be a clear-cut answer. There is some interesting case law that could be used to support an argument that the repayment of credit card debts to avoid incurring high interest rates could be allowable.

I am not qualified in benefits legislation and would not want to advise you either way as my thoughts could be incorrect.

I think you should re-post your question within the Benefits and Tax Credits sub-forum as more people well-versed in benefit case law hang out there

ITISWELL

Hi Willing2Learn,

Thank you so much for taking the time to read and reply to my post and thank you for your comments.
I will re-post as you suggested :-)

ITISWELL