ESA and savings question

Robbie_Alan

Hi, new member here. Not sure if this is the correct section to post but here goes, so currently I am self employed but I am due an operation very soon and my specialist surgeon indicates I have to refrain from work for at least six months. My question is after my operation I intend to claim ESA however my savings are around £30000 so to much for claiming ESA, so how can I legally dispose / invest that money ? Pensions, ISA, etc. Any advice appreciated. Rob.

Alice_Holt

Will you be claiming Contribution Based (New Style) or Income Based Universal Credit?

If Income Based UC and you try to hide your savings then the DWP will apply deprivation of capital and notional capital rules. Google this for more information.
https://www.entitledto.co.uk/help/Deprivation-of-savings-and-other-capital-Universal-Credit

nicetomeetyou

I'm on ESA and DLA. I find the £6000 saving limit too little. I wish it would be higher. At the moment when it nears the £6000 threshold my appointee says I have to spend some of it or I get penalised, there is only so much bedroom furniture you can buy from join lewis already which is already replacing good furniture. I end buying a new iMac that replaces an already good 2017 iMac 27''just because I find it difficult to find anything to spend it on. Its not only me but other service users in supported living that has this problem.

calcotti

The only ESA you will be able to claim is new style ESA, provided you paid NI contributions for April 2016 to March 2018, which is not means tested so will not be affected by your savings.

You will be excluded from means tested benefits such as Universal Credit and Council Tax Reduction because of your savings.

Money in pension pots is ignored but if you moved a lot of money into a pension pot at this point I think the deprivation of capital rules could still be applied.

If you have debts the UC rules do allow you to pay these off/down.

Carrieanne

nicetomeetyou wrote: »

I'm on ESA and DLA. I find the £6000 saving limit too little. I wish it would be higher. At the moment when it nears the £6000 threshold my appointee says I have to spend some of it or I get penalised, there is only so much bedroom furniture you can buy from join lewis already which is already replacing good furniture. I end buying a new iMac that replaces an already good 2017 iMac 27''just because I find it difficult to find anything to spend it on. Its not only me but other service users in supported living that has this problem.

I suspect that many people - possibly the vast majority - in your situation would be sorely tempted to accumulate an ever growing stack of undeclared cash to ensure they remain below the visible £6K threshold, An alternative to your current unnecessary spending on material items might include purchasing better quality food and drink, etc.

TELLIT01

For ESA the limit isn't £6k it's £16k. Above £6k and below £16k the amount received drops by £1 for very £250 in savings.
As for the OP, what is the point of disposing of a minimum of £14k in order to receive less than £80 per week? If the OP hides the money, it is fraud and could cost them a lot more than £14k in the long term. If they spend it then it's simply gone for no real purpose. Both options are stupid.

Cariad71

Contribution based ESA is not means tested

sportsarb

Am I the only one that suspects that WhamBam is at least two of the people in this thread?

Roco2208

Another new member here. My daughter is on ESA benefits and subject to the £6000 savings threshold. She has an 8 year old daughter. I wish to fund a Junior ISA for my granddaughter which she can access when 18. Will this ISA pot be excluded from the ESA £6000 threshold? I will fund the contributions by transferring to my daughter’s account who will fund the ISA by Direct Debit.
I would be grateful for any clarification. 

poppy12345

Roco2208 said:

Another new member here. My daughter is on ESA benefits and subject to the £6000 savings threshold. She has an 8 year old daughter. I wish to fund a Junior ISA for my granddaughter which she can access when 18. Will this ISA pot be excluded from the ESA £6000 threshold? I will fund the contributions by transferring to my daughter’s account who will fund the ISA by Direct Debit.
I would be grateful for any clarification. 

Starting a new thread would have better because you've posted pn the end of a thread that was started 19 months ago.

If the savings are over £6,000 and your daughter has access to them then yes they will be counted. Even transfering the funds to your daughter will count. It would be better if you had the ISA in your name.

calcotti

My understanding is that the Junior ISA will not be accessible by anybody except the child in whose name it is opened and only then when they turn 18. As such any money in the Junior ISA will not count towards your daughters earnings threshold for ESA.

However you should fund the ISA directly - if you put the money through your daughters account it may get picked up later and then she will have to prove that you only sent the money to her on the condition it went into the Junior ISA. I'm sure that's complication she could do without.

Although your daughter will have to be the one that opens the account you can pay into it directly.
https://www.nsandi.com/products/junior-isa

Can I invest in a Junior ISA for my grandchild?
Only parents or legal guardians can open an account for children under 16. Children aged 16 or 17 can open their own account, or their parent or legal guardian can open it for them. Once the account is open, anyone including grandparents and great-grandparents can pay in by bank transfer and standing order. All deposits must be from a UK bank account. See the 'How can you pay money in?' section for more details.

You can do this by bank transfer or set up a standing order if you want to make regular payments

How can I pay money in?
The person who looks after the Junior ISA can pay in by debit card. And anyone can pay in by bank transfer or standing order. All deposits must be from a UK bank account.